In July, too, the mood of German consumers improved only marginally. This is the result of a recent survey, the results of which were published by the German Retail Association (HDE) on Monday.
“Since a significant overall economic recovery can no longer be expected this year, consumer sentiment is almost flat,” admitted the industry organization, citing the current HDE consumption barometer. The monthly index, which is based on a survey of 1,600 people on consumption-related topics, was only slightly above the level of the previous month in July.
Despite the weak economic development, the propensity to buy is increasing
In view of the recent rather sobering forecasts for overall economic development in the country, the economic expectations of the consumers surveyed have fallen again, the HDE explained. On the other hand, the study participants assessed the development of their own income as “somewhat more optimistic” than in June due to the currently quite stable labor market and declining inflation.
Hopes of higher income also increased respondents’ propensity to buy. “This development is positive, but only weak. A strong growth impulse should still not arise from this,” explained the market researchers: inside and pointed out that the propensity to save had also increased compared to the previous month.
Trade Association does not expect a “significant overall economic recovery” in the current year
In view of the latest trends, the interim assessment of the authors of the study was extremely cautious: “After the first half of the year, there is clear disillusionment: A significant overall economic recovery can no longer be expected this year,” they explained. Private consumption is expected to develop “only weakly” in the coming months and will therefore hardly provide any positive economic impetus. “It is definitely not a growth driver like in the past this year. This is unlikely to be the case again until next year,” was the conclusion.