In March, consumer sentiment in Germany improves significantly. This is evident from the HDE Consumer Barometer, which shows a clear upward trend compared to the previous month. However, looking back at the past few months, no clear positive trend can be discerned. Instead, the steady ups and downs of recent times persist. Uncertainty dampens private consumption and prevents a stable upward trend.
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At the beginning of the year, consumer sentiment in Germany showed only extremely modest growth. By the end of the first quarter of 2024, consumer sentiment has now significantly improved. The HDE Consumer Barometer rises noticeably compared to the previous month and also exceeds the value from March 2023. Since the autumn of last year, the HDE Consumer Barometer has shown larger fluctuations from month to month. However, the level has only marginally increased since October overall. It gives the impression that consumers cannot derive a clear picture of the further development from the assessment of the overall economic environment. There is uncertainty.
Overall, a cautious development can be expected for private consumption in the coming months. There is neither a significant recovery, as consumers do not show a clear increase in optimism, nor will there be a sharp decline in consumption, as there are no clear signs of a downturn either. Optimistic and pessimistic tendencies alternate. Consumers have no clear expectation for the coming months. This uncertainty is likely to dampen private consumption. Strong growth impulses are therefore not forthcoming for the time being.
More information:
HDE Handelsverband Deutschland
www.einzelhandel.de
