Consumer sentiment in Germany remains tense. The Society for Consumer Research (Gfk) and the Nuremberg Institute for Market Decisions (Nim) predicted a significant decline compared to the previous month for the current September 2024.
In October, however, consumer sentiment could recover slightly. The index value is expected to rise by 0.7 points to -21.2 points. However, the propensity to save, which also rose by 1.3 points this month, is having a dampening effect on the recovery. Germans are also more negative about the development of the economy than before.
“After the severe setback in the previous month, the slight improvement in the consumer climate can be interpreted as stabilization at a low level. Since June 2024 – when the consumer climate was measured at -21 points – the consumer climate has not progressed. Therefore, the slight increase cannot be interpreted as the beginning of a noticeable recovery. The current mood among consumers is generally too unstable for that,” explains Rolf Bürkl, consumer expert at NIM. “In addition to the well-known negative influencing factors such as wars, crises and inflation, the labor market has again become a factor in recent months.” Bürkl is referring to the rising unemployment figures and corporate bankruptcies. Announcements by companies to cut staff also dampened the mood.
