By Andreas Kissler
BERLIN (Dow Jones)–After several months of negative trends, consumer sentiment improved slightly in November according to the German Retail Association (HDE). The HDE consumption barometer rose in November to 85.21 points from 84.14 points in October, the association announced in Berlin. However, the consumption barometer is still at a low level. In September it was 86.28 points. “The view on consumption and purchases has been characterized by strong restraint in the past few months,” explained the HDE. “This negative development does not continue in November.”
The propensity of consumers to make purchases increases for the Christmas business. Although it remains at a low level, a partially decreasing reluctance to consume allows “a somewhat more optimistic view of the pre-Christmas period”. According to the latest survey results, income expectations have increased. This assessment probably also reflects the relief measures announced by the federal government, which are intended to cushion the high gas and electricity costs in the energy crisis.
Economic expectations also improved slightly for the first time in five months. According to the information, consumption will be dampened by a slightly higher propensity to save. Although the ongoing downturn in consumer sentiment has finally come to an end, there is still no sign of optimism. Rather, the mood among consumers remains very bad despite a slight improvement. The rising cost of living continues to be viewed with concern. “The coming weeks will show whether the reluctance to buy for the Christmas business will continue,” said the HDE. Should the recession, which has so far not materialised, set in in the coming quarters, a renewed weakening of consumption is to be expected.
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DJG/tank/apo
(END) Dow Jones Newswires
November 07, 2022 03:02 ET (08:02 GMT)