Consumer sentiment in Germany showed a very slow recovery from the impact of the coronavirus pandemic in September, according to the latest HDE (Handelsverband Deutschland) consumption barometer.
The significant brightening of consumer sentiment from the past two months has given way to a 'wait-and-see attitude' on the part of consumers following a recent increase in infections.
This has also reduced the impact of the reduction in VAT on consumption patterns, the report said.
Consumers' propensity to buy has increased despite remaining below the previous year's figure, the HDE barometer revealed.
The report found that customers were in a positive mood regarding their income, but were cautious about spending their money solely for consumption and showed interest in increasing their savings.
Overall, given the positive trend, private consumption can contribute to the overall economic recovery, the report added.
The report also said that the growth in the momentum of private consumption is likely to continue at a moderate pace in the event of no further deterioration in the labour market.
The HDE Consumption Barometer is a monthly report based on a survey of 2,000 respondents sharing their propensity to buy and save, taking into account their financial situation and other factors relevant to consumption.
It does not reflect current consumer behavior, but the expected mood over the next three months.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.