German Consumer Sentiment Improves But Remains Low
German consumer sentiment brightened slightly, according to June figures from German trade association HDE, but remains at a low level due to the continuing effects of the coronavirus.
“Just as the restrictions on public life were incrementally loosened from week to week, the mood of consumers also brightened up a bit,” the HDE said.
After its historic low in May of 90.53 the trade association’s consumer barometer rose to 93.51 in June, showing “a slight upward trend,” HDE said. However, this is the second-worst value since the barometer started in 2016.
“The outlook for the next few weeks is marked by great uncertainties,” HDE added.
According to the data, consumers’ propensity to buy rose slightly but it is still at a significant lower level than in the previous year.
“German shoppers are still far from being in a good consumer mood,” HDE said.
Data show an increasing propensity to save, as consumers look skeptical at medium-term developments and are building up a financial cushion.
The HDE consumption barometer, published monthly, surveys 2,000 people on their propensity to save and make purchases, their financial situation and other relevant factors. It doesn’t show current consumer behavior, rather the expected behavior in the coming three months.
Source: Dow Jones