Buying mood in Germany has risen slightly
After a long dry spell, Germans are in a slightly more positive buying mood again. According to the consumer climate study published by consumer research company GfK and Nuremberg-based institute NIM on Wednesday, both income expectations and the propensity to make major purchases had increased noticeably by the end of the year.
In their forecast for January, the institutes put the consumer climate at -25.1 points. This represents an increase of 2.5 points compared to the previous month. However, the consumer climate was comparatively stable at around +10 points before the coronavirus pandemic.
"It remains to be seen whether the current increase is the start of a sustained recovery in consumer sentiment," said NIM expert Rolf Bürkl. "Consumers are still very worried." Geopolitical crises and wars, sharply rising food prices and discussions about the federal budget are causing uncertainty. "As a result, the level of consumer confidence is currently still extremely low," emphasized Bürkl.
Only when solutions to the international crises have been found and measures for more price stability have been taken will consumption be able to recover in a stable manner. The most important pillar of the slight improvement at the end of the year is income expectations. People can hope for higher wages and salaries. In a survey, a third responded that wage increases that had already taken place or were in prospect led to an optimistic assessment.
In the wake of improved income prospects, the propensity to buy has also increased. In addition, economic pessimism has also eased somewhat. Expectations regarding the economy have risen by 1.9 points compared to the previous month and 10 points compared to the same period last year.
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Following the positive shift in consumer sentiment, the buying mood in Germany may inspire increased purchases within the nation. According to a recent GfK study, the buying mood in Germany has shown a slight improvement, indicating a potential boost in consumer spending in the country.
Source: www.ntv.de
