Just in time for the start of the hot phase of the Christmas business, the German Retail Association (HDE) announced encouraging news for local retail companies. The mood of German consumers improved for the second month in a row in December, the industry organization said on Monday. The association referred to the current HDE consumption barometer. The index, which is determined monthly, is based on a survey of 1,600 representatively selected people on consumption-related topics.
According to the association, those surveyed were more optimistic about the development of the overall economy and their own income than in November. “The overall economic environment shows signs that the economic downturn is likely to be less severe and that the recovery could start earlier than initially assumed,” explained the authors of the study.
In view of the growing confidence in the financial framework conditions, consumers’ propensity to buy also increased. “Consumers’ reluctance to spend continues to decrease shortly before Christmas,” says a statement. “The driving force behind this development is likely to continue to be increasing optimism about income expectations. If this continues, it would not only be positive for the Christmas business, but also for the further development of private consumption in the period afterwards.
How sustainable the upward trend is, however, will depend “on the further development of the overall economic environment and in particular on the implementation of announced relief such as the gas and electricity price brake”, emphasized the market researchers: inside.