The consumer climate in Germany remains weak due to consumers’ strong tendency to save against the backdrop of high inflation. The index value for consumer sentiment fell by 1.4 points to minus 28.1 points, as the consumer research institute GfK announced on Tuesday in Nuremberg. The index value calculated for November fell for the third month in a row and reached its lowest level since April. According to GfK’s assessment, no significant improvement in the situation is expected for the rest of the year.
Analysts were surprised by the strength of the mood dampener. They had assumed an index value of minus 27.0 points. The economic indicator has been published jointly by GfK and the Nuremberg Institute for Market Decisions (NIM) since October.
A renewed increase in the propensity to save has reinforced the downward trend in the consumer climate. “With the third decline in a row, hopes of a recovery in consumer sentiment this year must finally be buried,” commented Rolf Bürkl, consumer expert at NIM.
In order to reverse the trend in consumption, it is essential that the recent decline in inflation continues, the GfK statement continues. The inflation rate in Germany fell significantly to 4.5 percent in September. (dpa)