- Assessment reveals a decline in consumer sentiment.
The retail sector in Germany is facing a grim situation, as per industry reports. The monthly consumer climate index compiled by the German Retail Federation (HDE) has plummeted in September. This suggests that folks are becoming increasingly gloomy about the economy's future and their own financial situations, leading to fewer planned purchases in the near future.
The HDE commented, "The current climate is not favourable for personal spending." Given this scenario, it's unlikely that consumer spending will rebound this year. The retail sector seems devoid of any growth stimuli. "Lacking personal spending as a growth catalyst, the economic outlook also becomes less optimistic," it added. There's even a possibility of a decline in the GDP.
In the initial half of the year, consumer sentiment showed a slight improvement, as per the consumer climate index, and had been on an upward trend for several months consecutively. However, this incline came to a halt in July, and since then, the index has been declining. The HDE conducts surveys with 1,600 individuals every month, probing their purchasing and saving habits, financial situation, and other consumption-related aspects.
The retail sector's struggles are reflected in the decrease in consumer spending, as indicated by the HDE's surveys. With the current unfavorable climate, it's challenging for consumers to make significant purchases.
