Consumer sentiment in Germany is likely to shrink over the next three months, according to the HDE (Handelsverband Deutschland) Consumption Barometer.
The HDE Consumption Barometer is released every month and reflects the expected consumer mood for the coming three months.
Current Consumer Mood
Currently, the barometer is at a low level in the first quarter of 2019.
"Consumers are increasingly influenced by the declining economic forecasts", explained Stefan Genth, the HDE Chief Executive.
Genth added that it is important to create stable consumer trust, for example, by removing the solidarity surcharge and introducing tax relief for small and medium incomes.
"The domestic economy and consumption must be strengthened in the face of weakening export and production figures, as an anchor of stability for the entire economy", Genth continued.
Consumption in recent months benefited from positive development in the labour market.
Possible reasons for the slowdown in consumer sentiment are the decline in spending propensity as well as lower income and economic expectations.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Jana Zimmermann. Click subscribe to sign up to ESM: The European Supermarket Magazine.