Consumer expectations
Consumer sentiment rises for the second year in a row
Political and economic developments have been suppressing the buying mood in Germany for some time. Even if the mood improves, it is still far from good.
Consumer spending mood is recovering somewhat, but the overall mood remains pessimistic. The economic climate index from the Nuremberg consumer research companies GfK and NIM rose for the second time in a row in October by 2.7 points to -18.3 points. This means it has reached the highest value since April 2022, shortly after the outbreak of the Ukrainian war, the experts said. However, consumers were once again somewhat more pessimistic about economic developments.
Despite the increase, the level of consumer sentiment remains extremely low, explained NIM consumer researcher Rolf Bürkl. “The uncertainty caused by crises, wars and increased prices is still very pronounced at the moment and is preventing positive factors for consumption, such as noticeable real income increases, from having their full effect.” News about corporate bankruptcies and job cuts also depressed consumer sentiment.
According to the economic climate index, people’s expectations regarding overall economic development are falling for the third time in a row. When it comes to their income expectations, however, they are somewhat more optimistic. Inflation has stabilized while wages and salaries have increased. Pensioners are also currently seeing real increases in their income.
dpa
Source: Stern
