Berlin (Reuters) – Consumer sentiment in Germany is worse than it has been in six months in light of the fighting in the Middle East.
The corresponding consumption barometer fell by 1.24 points to 93.82 points in November, falling to its lowest level since May, as the German Trade Association (HDE) announced on Monday. One reason for the poor development is the Hamas attack on Israel and the resulting conflict, according to the HDE. “This tense geopolitical situation is likely to contribute to consumer uncertainty.”
As a result, people in Germany plan to spend less on consumer spending, while their propensity to save increases. This means that a significant increase in private spending in the rest of the year is unlikely, it said. “Given the current situation, it cannot be ruled out that the clouded mood could have a dampening effect on Christmas shopping.” A significant recovery is unlikely to begin until next year.
According to the HDE, the pessimism of consumers contrasts with the economic situation: “The overall economy is showing a certain stabilization of development, which can certainly give rise to optimism,” it said. “The consumers surveyed, however, do not share this optimism.” The GfK and NIM consumer researchers had also predicted a decline in their barometer for November.
The HDE consumption barometer is based on a monthly survey of 1,600 people. You will be asked about your propensity to buy, your propensity to save, your financial situation and other factors relevant to consumption.
(Report by Nette Nöstlinger, edited by Rene Wagner. If you have any questions, please contact our editorial team at [email protected])