Consumer sentiment in Germany has brightened thanks to the comparatively moderate Corona numbers – but the mask requirement and distance rules continue to dampen the desire for the shopping experience.
Just in time for the Christmas business, consumer sentiment in Germany has brightened significantly – and there is still optimism on the labor market.
The Nuremberg consumer research company GfK determined in its monthly study for September consumer sentiment among people in Germany that almost reached the level before the Corona crisis. Previously, the sentiment barometer had been falling for two months in a row.
However: The trend is based on optimism in the income outlook and a positive assessment of the economic situation, announced the GfK on Tuesday. The actual buying mood remains at a low level – people remain cautious, as GfK consumer expert Rolf Bürkl said. The propensity to consume remains below the level of September 2020, when the crisis was already in full swing.
Optimism on the job market too
The job market also continues to look good. The labor market barometer – a leading indicator from the Nuremberg Institute for Labor Market and Occupational Research (IAB) – only fell by 1.2 points compared to August, as the institute announced. At 106.2 points, however, it is still higher than in any previous year since the start of the barometer in 2008.
The employment barometer of the Munich Ifo Institute also shows a high value with more than 104 points. The Federal Employment Agency announced its September statistics for the German labor market on Thursday.
“The upturn was slowed somewhat by the supply bottlenecks in the industry. The employment agencies expect unemployment to decline further, but not as quickly as in the last few months, ”said Enzo Weber, head of the IAB’s research department, Forecasts and Macroeconomic Analyzes.
Consumer sentiment is still strongly influenced by the progress of the corona pandemic, sum up the GfK consumer research team. “The increase in the incidence slowed down significantly at the time of the survey, and the numbers are currently even falling slightly. This increases the optimism among consumers that the fourth wave will be less pronounced than many feared, ”explained Bürkl.
Whether this will help the retail trade to flourish at Christmas is still in the stars. “It’s still too early to make a statement,” said Bürkl. It will depend to a considerable extent on how the fourth corona wave goes.
GfK: No trend reversal yet
Although the consumer climate has almost reached the pre-Corona level again, it is probably too early to speak of a trend reversal, he said. “The main thing here is how the infection process will develop in the winter months and whether new restrictions will be necessary.”
“This comparatively low level is not surprising, because the mask requirement and distance rules still dampen the desire to shop despite a well-filled wallet,” said Bürkl. Only when these restrictions are removed will the propensity to consume be able to recover sustainably.
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.
