The German Trade Association (HDE) expects consumer sentiment to improve further in March. The industry organization warned on Monday that there is currently no sign of a stable upward trend given the ongoing uncertainty.
The association was referring to the current HDE consumption barometer, which had increased “noticeably” compared to February. The monthly index, which is created by the Handelsblatt Research Institute on behalf of the HDE, is based on a survey of 1,600 people on consumption-related topics.
According to the latest results, the study participants assessed the overall economic development more optimistically than in the previous month. Individual income expectations also rose slightly. At the same time, the consumers surveyed’s propensity to make purchases increased, while their intention to invest savings decreased somewhat.
Trade association sees “continued zigzag course” in consumer sentiment
However, given developments over the past few months, the HDE did not give retailers too high hopes of a sustainable upswing. Consumer sentiment continues to be on a “persistent zigzag course,” the association explained. Consumers alternated between “optimistic and pessimistic tendencies”. A “clear positive trend” cannot therefore be seen from the recent increase.
“The impression arises that consumers cannot derive a clear picture of future developments from their assessment of the overall economic environment. There is uncertainty,” emphasized the industry organization in view of the recent fluctuations.
In terms of private consumption, “a subdued overall development is to be expected in the foreseeable future,” explained the HDE. “Neither is a major recovery taking place as there is no clear increase in optimism among consumers. There will still be a slump in consumption, as there are no signs of a clear slowdown.”