Consumer sentiment in Germany last deteriorated noticeably in November. This emerges from the current Gfk consumer climate powered by NIM. Both Germans’ income expectations and their propensity to purchase have recorded slight declines, while their propensity to save has increased significantly.
For December, Gfk and NIM already expect a further decline of 4.9 points to -23.3 points. This means that consumer sentiment in the last month of the year is at a similar level to the previous year. Consumers were also more pessimistic about the state of the general economy for the fourth time in a row.
“The last weeks of the year end with a significant setback in the consumer climate. The -23.3 points measured for December are the lowest level since May of this year (May 2024: -24 points). “Consumer sentiment in the country is currently at a level comparable to that at the end of 2023,” explains Rolf Bürkl, consumer expert at NIM. “Consumer uncertainty has apparently increased again recently, as evidenced by the increasing propensity to save. There is also another uncertainty factor: worries about your own job in Germany are increasing. The reasons for this are certainly the job cuts reported by industry and the relocation of production abroad. In addition, the number of bankruptcies has recently increased. In short, the consumer climate remains in the basement.”