German consumer sentiment for August 2018 has risen almost 1.5 points from an all-time low in July, according to an HDE Konsumbarometer report.
The recovery has been attributed to the summer holidays, a time for heightened shopping and travel.
It has also been projected that the recovery will continue for the next three months, although at a low level.
Consumers Unimpressed
In the first half of 2018, consumers were largely unimpressed by the uncertainties in national and international politics and the looming trade dispute with the US.
According to HDE chief executive Stefan Genth, "The recovery of consumer sentiment in the current HDE consumer barometer should not be a reason for politicians to keep their hands on their laps. Rather, we now need a noticeable relief for small and medium-sized incomes, in order to stabilise purchasing power, even for worse times."
The Summer Holiday Advantage
The most important driver for the recovery of the HDE consumption barometer is the propensity to buy.
The beginning of summer holidays raises the expectation to buy as it is the main holiday and travel time.
Respondents therefore anticipate an increase in consumption on vacation.
The HDE Consumption Barometer appears monthly and is based on a survey of 2,000 people on the propensity to buy, the propensity to spend, the financial situation and other factors relevant to consumption.
It does not reflect the current consumer behaviour, but the expected mood in the coming three months.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
