Consumers are apparently less in the mood to buy than they have been in the past. In addition to Corona, inflation should also play a role.
The consumer climate in Germany is getting worse. According to the latest consumer survey by the GfK Institute, income expectations have risen slightly. But declining economic expectations, rising prices and new corona worries are slowing down the desire for bigger purchases.
The GfK consumer confidence index fell from -0.4 points in August to -1.2 points in September. The economic euphoria has decreased, it said. In addition, inflation in Germany rose to 3.8 percent in July. Experience has shown that rapidly rising prices have a “dampening effect on consumer confidence,” said GfK consumer expert Rolf Bürkl. In view of the low interest rates, “private households perceive the inflation rates as even more threatening to their purchasing power”, even if a large part is a one-off effect after the temporary reduction in VAT in 2020.
In addition, there are increasing corona infections and discussions about how to deal with unvaccinated people. That “made consumers noticeably insecure,” said Bürkl: “They fear that restrictions could even be tightened again. Apparently, this is currently depressing consumer sentiment. ” An unadulterated shopping experience is not possible with a mask requirement and distance rules anyway.
The propensity to buy decreased. The indicator fell from 14.8 to 10.3 points. The GfK surveys 2,000 people every month on behalf of the EU Commission. The study on consumer confidence is an extract from the overall survey.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
