Consumer sentiment in Germany has improved slightly in November, just ahead of the Christmas period, according to the German Retail Federation (HDE).
Describing consumer sentiment for the coming weeks as ‘cautiously optimistic’, the HDE noted that it was impossible to state whether this improvement in sentiment is the beginning of a recovery.
Consumer Sentiment
German consumers’ propensity to buy continued to increase slightly in November.
There was also an indication of weakening consumer restraint, as the propensity to save declined in this period.
People are also optimistic about income expectations and hope for an improvement in their financial condition, the survey revealed.
However, the HDE cautioned that, for the current year, no major impulses from private consumption for the economy as a whole are to be expected.
HDE Consumer Barometer
The HDE Consumer Barometer, published on the first Monday of each month, is based on a monthly survey of 1,600 people on their propensity to buy, their propensity to save, their financial situation, and other consumption-related factors.
Produced by the Handelsblatt Research Institute (HRI) on behalf of the HDE, the barometer serves as an indicator for private consumption.
It does not reflect current consumer behaviour, but, rather, the expected mood in the next three months, the HDE added.
In June, the ifo Business Climate Index found that there was no boost in confidence among German businesses as a result of Euro 2024, with sentiment deteriorating during the month.
This drop was due to more pessimistic expectations on the part of business owners, though the assessment of their current situation remained unchanged.
