The decline in consumer sentiment in Germany, which has been ongoing for a number of months, has continued in October, the latest consumer barometer by Handelsverband Deutschland (HDE) has found.
The German retail association found that consumer sentiment has declined month-on-month, the fourth month in a row that this has been the case.
In addition, HDE noted that in the final few months of the year, there is likely to be no growth stimulus for private consumption, keeping sentiment levels subdued.
'Minimal Increase'
'Since consumers' propensity to buy is increasing compared to the previous month, a minimal increase in consumption is to be expected in the coming weeks and months,' HDE said.
'At the same time, however, consumers are also planning to intensify their savings efforts. Their reluctance to consume is therefore still noticeable. Although private consumption is unlikely to decrease in the coming weeks up to the pre-Christmas period, a positive impulse for overall economic growth is not to be expected.'
Economic Outlook
HDE added that a 'weak' overall economic outlook, coupled with 'significantly less optimistic' forecasts at the start of the fourth quarter are also weighing on consumers, who share the pessimism of economic experts.
Consumers are now more pessimistic than a year ago, and not very optimistic about the future development of their own income streams, where expectations are similarly falling.
'An economic recovery is no longer expected this year, HDE noted. 'In fact, another year of GDP decline is more likely, as consumption will not increase noticeably in the coming months and will therefore no longer be a driver of overall economic growth.'
HDE's monthly consumer barometer is published on the first Monday of each month, and surveys some 1,600 people.
