Consumer sentiment dips again somewhat in July after a steady upswing
After several months of growth, consumer sentiment has slightly declined. According to the German Retail Association (HDE), the so-called consumer barometer reached a value of 97.76 points in July, which is 1.1 points less than in June. The value had risen four times in a row before that. Consumers are therefore looking at the future more pessimistically again - their confidence is, however, greater than it was a year ago.
For retail trade, consumer inclination is particularly relevant, which has now decreased, as the HDE reported. The outlook on the economic development also darkened noticeably. "They do not share the increasing optimism of the latest economic forecasts," the HDE stated. Income expectations also decreased - this has consequences for consumer inclination. However, consumers do not plan to further expand their savings efforts.
According to the HDE, the decline in the barometer "could be the beginning of a negative trend or just a short-term pause in a sustained uptrend." Therefore, "there is still no growth impulse for the overall economy from consumption."
The HDE consumer barometer is a future-oriented index, it does not reflect current consumer behavior but the expected attitude towards consumption in the coming three months. Approximately 1600 people are surveyed once a month on their purchasing intentions, savings intentions, financial situation, and other consumption-relevant factors.
The decline in the consumer barometer, recorded at 97.76 points in July, is a 1.1-point drop from June's figure, indicating a slight decrease in consumer sentiment. Despite this, consumers' confidence is still higher than it was a year ago, suggesting some resilience in the face of upwind economic conditions.
