Consumer sentiment brightens somewhat for the Christmas season
Consumer sentiment in Germany has improved in time for the Christmas season and halted the downward trend of recent months.
This is according to the latest consumer survey by Nuremberg-based consumer research company GfK and the Nuremberg Institute for Market Decisions (NIM), which was published today. "After three consecutive declines, the consumer climate stabilized at the end of the year," said NIM consumer expert Rolf Bürkl.
However, the level remains very low in a long-term comparison and there are no signs of a sustained recovery in the coming months. "The mood is still characterized by uncertainty and worries," said Bürkl. In addition to inflation, consumers cited the international crises as the main reason for uncertainty in an in-depth survey.
Uncertainty among consumers
"This empirically confirms that the propensity to save serves less as an indicator of conscious investment, but can primarily be interpreted as an indication of the extent of consumer uncertainty," said Bürkl. "Conversely, however, this also means that a sustainable recovery in the consumer climate requires inflation to be brought back to a reasonable level and that solutions must be found to the international trouble spots."
The forecast for the consumer climate for December is minus 27.8 points, an increase of 0.5 points on the previous month. Before the coronavirus pandemic, the GfK consumer climate was comparatively stable at around plus 10 points.
Around 2,000 people were surveyed for the study between November 2 and 13 on behalf of the EU Commission. The Nuremberg Institute for Market Decisions, formerly GfK-Verein, is the founder and co-owner of GfK, which is about to merge with its British-American competitor NielsenIQ.
Despite the improvement in consumer sentiment for the Christmas season, many consumers are still hesitant to increase their spending due to economic uncertainties and international crises. Therefore, a substantial recovery in consumer consumption during the holiday season is unlikely without a significant decrease in inflation and resolution of global issues.
Source: www.dpa.com
