After the second deterioration in a row, consumer sentiment in Germany has reached an all-time low. Based on its latest consumer climate study, the Nuremberg-based consumer research company GfK announced on Wednesday that German expectations regarding the economic outlook and their incomes as well as their desire to buy were dampened noticeably in April. The overall situation has slipped to its lowest level since surveys began in 1991. With the bad mood, the previous low from April 2020 will even be undercut – the peak of the first corona wave with an extensive lockdown, according to GfK.
A clearly noticeable increase in the propensity to save in April accelerated the crash again. “The war in Ukraine and high inflation have dealt consumer sentiment a serious blow. Hopes of a recovery as a result of the easing of restrictions caused by the pandemic have finally been dashed,” said GfK consumer expert Rolf Bürkl.
Energy prices have risen sharply as a result of the uncertainty caused by the war in Ukraine and extensive sanctions against Russia – this has caused consumers’ income prospects to slip. High inflation rates significantly reduced the purchasing power of consumers. In February 2003, a worse value was last measured for income expectations.
“There can only be a sustainable trend reversal in the consumer climate if there are successful peace negotiations in the war in Ukraine,” said Bürkl. At the moment, however, consumers see a real risk of recession. In the wake of this, the desire to buy has fallen for the third time in a row. “If significantly more has to be spent on petrol, heating oil and gas, there are correspondingly fewer financial resources for other purchases,” says the consumer experts from Nuremberg. (dpa)