Consumer sentiment in Germany continued to rise in July, as in the past two months, but is still far behind pre-pandemic levels, according to the latest HDE (Handelsverband Deutschland) consumption barometer.
In July, the consumption barometer reached the value last recorded in April, the month in which the first major slump in consumer sentiment was witnessed due to the coronavirus pandemic.
Consumers' income expectations have risen further as economic expectations have brightened, the study noted.
However, the HDE also cautioned that it should not be considered as an ‘all-clear’ signal as many companies are still cutting work hours or have previously announced job cuts.
The consumption barometer also revealed a positive trend in the propensity to make purchases, in a new shopping environment challenged by the need to meet additional hygiene standards and with the potential risk of infection.
A further increase in consumer sentiment in the coming months will depend primarily on how the pandemic evolves, the report said.
The HDE consumption barometer is a monthly report based on a survey of 2,000 respondents that takes into account the propensity to buy and save, financial situation, and other factors relevant to consumption.
It does not reflect current consumer behaviour, rather 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.