After a long dry spell, the German Retail Association (HDE) is again hoping for “positive impulses for private consumption” in the coming months. The industry organization referred to the current HDE consumption barometer for February.
The monthly survey of 1,600 people on consumption-related topics, the results of which for the current month were published on Monday, resulted in a “renewed and significant improvement in consumer sentiment,” the association said. Although the index has risen for the fourth month in a row, “consumer sentiment has not yet reached the level it was before the Russian war of aggression against Ukraine,” admitted the HDE.
Consumers want to spend more in the future – but also save more
According to the association, the latest consumption barometer showed a “steep upward movement” compared to the previous month of January. The basis is the “increasing optimism” of those surveyed with regard to overall economic development. According to the authors of the study, individual income expectations have recently increased thanks to greater confidence in the general economy.
Because the consumers surveyed now expect to have more money available in the future, the propensity to buy increased further. At the same time, however, there was an increased desire to save more. This indicates that “expected increases in income are not exclusively consumed,” the market researchers explained. “There is still a certain need for security among consumers.”
Private consumption could become “one of the central pillars of the economic recovery”.
In view of the upward trend in the consumer barometer, which has now been unbroken for months, the HDE gave German retailers hope for the near future: “The renewed and significant improvement in consumer sentiment increases the likelihood that the overall economic situation could improve as expected towards the summer and the private Consumption will be one of the central pillars of the economic recovery,” the association explained, but continued to see uncertainties: “In particular, the scope for consumers’ disposable income will be decisive for this in the coming months.”