The buying mood of German consumers has apparently bottomed out for the time being. In November, there was a “slight improvement in consumer sentiment at a low level,” said the German Retail Association (HDE) on Monday, citing current findings. The HDE consumption barometer rose again slightly in November after “repeatedly new all-time lows” in the previous months. However, there can be “no talk of an optimistic and really bright view of the coming months”.
The index, which is determined monthly, is based on the survey of 1,600 representatively selected people on consumption-related topics. With regard to the overall economic development and their own income expectations, study participants were a little more confident in November than they were last time.
Reluctance to spend eased somewhat in November
The current economic data contributed to this: “The economic development in Germany in the third quarter was better than expected and there is hope that the overall economic slump will not be quite as sharp and deep,” explained the market researchers: inside. The government aid packages that have since been announced, which are intended to provide relief from the sharp rise in electricity and gas prices, have also contributed to the fact that the respondents are “somewhat more optimistic about the future development of their disposable income” despite the persistently high inflation, according to one Message.
As a result, consumers’ propensity to buy also increased. In addition, seasonal reasons came into play: “With the approaching Christmas, at least some consumers are less reluctant to consume,” said the authors of the study. At the same time, however, the respondents also intended to build up financial reserves to a greater extent.
In view of the slight upward trend, the HDE gave retailers hope for the all-important Christmas business. The “partly declining consumer restraint” allows “a somewhat more optimistic view of the pre-Christmas period,” explained the association. However, it remains to be seen whether the recovery is sustainable: “If the recession that has so far failed to set in in the coming quarters, a renewed weakening of consumption is to be expected,” warned the industry organization.