The mood of consumers in Germany deteriorated noticeably in September, with a negative trend emerging. This is made clear by the consumer barometer of the German Retail Association (HDE). As a result, consumer reluctance is increasing. This means that private consumption will not be able to achieve significant growth in the coming months. The likelihood of a recovery this year is increasingly decreasing.
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This September, the HDE consumer barometer fell, and consumer sentiment in Germany plummeted. This decreasing optimism corresponds to the decline in economic sentiment and the current economic outlook. Consumers are more pessimistic about future economic developments and their own income. As a result, consumers are planning fewer purchases in the coming months.
The current macroeconomic environment is not conducive to private consumption, which fell by 0.2 percent in the second quarter of this year compared to the previous quarter. In view of this development, the impression is growing that neither the economy as a whole nor private consumption will recover this year. There is no growth stimulus in sight for the retail sector. Without private consumption as a growth driver, the economic outlook is also bleak. Macroeconomic stagnation - if not even a decline in GDP - for the year as a whole is becoming more likely.
The HDE consumer barometer, which is published on the first Monday of each month, is based on a monthly survey of 1,600 people on their propensity to buy, their propensity to save, their financial situation and other factors relevant to consumption. The consumer barometer, which is produced by the Handelsblatt Research Institute (HRI) on behalf of the HDE, serves as an indicator for private consumption. It does not reflect current consumer behaviour, but rather the expected mood in the next three months.
More information:
HDE
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