Sentiment among German consumers continued to remain level in September, with no increase seen since October 2022, according to the latest consumer barometer from the German Trade Association (HDE).
The next few months will show whether there will be a trend reversal, depending on further developments in the overall economic environment.
No growth impulses are expected from private consumption in the next few months, the HDE noted.
The propensity to buy continued its positive momentum, both on a month-on month and year-on-year basis.
It suggests that a significant decline in private consumption is not to be expected despite the current value remaining noticeably behind the long-term average.
The propensity to buy is seeing a slow recovery and from a low level, while the tendency to save is witnessing an increase, the trade association added.
Economic expectations among consumers improved in September after declining in recent months.
In contrast to companies, consumers are optimistic about the economic outlook, with the sentiment about individual income situation is similar to that of the previous month.
The HDE consumption barometer is based on a monthly survey of 1,600 people on their propensity to buy, their propensity to save, their financial situation and other factors relevant to consumption.
The consumption barometer, which is created by the Handelsblatt Research Institute (HRI) on behalf of the HDE, has an indicator function for private consumption.
The survey does not reflect current consumer behaviour, but rather the expected mood in the next three months.