Consumer sentiment fell for the fourth consecutive month in October. This emerges from the current survey results from the German Trade Association and the results of the consumer barometer, for which around 1,600 people are regularly surveyed.
The declining mood is primarily due to consumers’ increasing efforts to save, which even counteracts a slight increase in their willingness to buy. Private consumption will not decrease until the run-up to Christmas, but no major stimulus for overall economic growth is to be expected, according to the HDE.
Consumers’ economic prospects have also weakened. They share the pessimism of economic experts and the economy. This means that economic expectations are more pessimistic than a year ago, which also affects their own income expectations.
According to the HDE, an economic recovery is no longer expected this year. There will be no consumption and therefore no further boost to overall economic growth. Another year of GDP decline is becoming more likely.