German consumer confidence stalls: HDE report

Retail

Pedestrian in a shopping street Image: Aygin Kolaei for FashionUnited

The upward trend in German consumer confidence has stalled, according to the latest survey results from the German Retail Federation (HDE). "Caution continues to govern consumer behaviour," the HDE stated. "A noticeable recovery in private consumption is not expected in the near future."

The HDE's findings are based on the August HDE Consumer Barometer, a monthly index derived from a survey of 1,600 people. The index saw a slight dip in August after several months of slow but steady growth. The HDE noted that it remains to be seen "whether the stagnation in consumer sentiment is the beginning of a negative trend," adding that this would depend on "the economic policy measures of the German government and the development of the geopolitical environment in the coming months."

While respondents were slightly more optimistic about the overall economic outlook, they don't anticipate significant growth, with the HDE stating, "Consumers are not afraid of another recession, but they also do not seem to consider significant growth likely." Participants had a more positive view of their personal income development but also expected "an increasing rate of price increases." This combination of uncertainty and a lack of growth impulses meant that while the willingness to buy increased only marginally, the desire to save grew more significantly. The HDE concluded, "Consumers continue to act with caution and are waiting for impulses. They do not believe in a short-term economic recovery. Due to the prevailing uncertainty, there will likely be no boost in private consumption in the coming months."

This article was translated to English using an AI tool.

Consumer Confidence

Consumer sentiment

HDE