Consumer sentiment in Germany witnessed further recovery in December, after a slight improvement in November, according to latest data from German Retail Association (HDE).
Despite the increase, the index remains at a low level compared to previous years, the HDE noted.
The reluctance to spend has eased to some extent ahead of Christmas, despite the propensity to buy remaining at a low level, the survey showed.
Elsewhere, the propensity to save remained nearly unchanged, after a slight reversal in trend in the past few months.
According to the HDE, the increase in the propensity to buy could have a positive impact on Christmas business and boost private consumption in the coming months.
Economic Expectations
Perceptions around the economy and income expectations also improved in this period, the study showed, with consumers' economic expectations rising for the second month in a row.
Forecasts indicate that the overall economic slump will not be as severe as previously expected, which, in turn, has boosted consumers' confidence about their income.
This slight optimism can be attributed to the stable labour market situation and the expectation that inflation rates will not rise any further, the HDE added.
The HDE consumption barometer is based on a monthly survey of 1,600 people on their propensity to buy and save, taking into account their financial situation and other factors relevant to consumption.
It does not reflect current consumer behaviour, but the expected mood in the next three months.
© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
