The economic consequences of the war in the Ukraine and the fears of inflation that have been fueled even more by the people in Germany are poison for the mood to buy.
The consumer climate after the Russian attack on Ukraine virtually collapsed in March, according to the monthly consumer climate study by Nuremberg-based research company GfK.
"In February, there were still high hopes that consumer sentiment could also recover significantly with the foreseeable easing of the restrictions imposed by the pandemic," said GfK consumer expert Rolf Bürkl.
"However, with the start of the Ukraine war, this suddenly vanished into thin air."
Lowest income expectations since the financial crisis
The growing uncertainty and the consequences of the sanctions against Russia have driven up energy prices in particular.
This is having a noticeable impact on general consumer sentiment, said Bürkl.
"Due to the sharp rise in prices for gas, heating oil and petrol, consumers see their purchasing power melting away." With regard to the income expectations of Germans, the lowest value since the financial crisis has been measured.
Nine out of ten Germans are very or very worried about energy prices, according to a special GfK survey on the consequences of the Ukraine crisis.
When it comes to food prices, 80 percent of people are very or very worried.
The propensity to buy has not yet collapsed, but has reached its lowest value since April 2020, the peak phase of the first corona lockdown.
“There can only be a sustainable recovery in the consumer climate if there is a quick ceasefire followed by peace negotiations.
Then the domestic economy will again make an important contribution to overall economic development due to the falling uncertainty, and the easing of the pandemic-related restrictions would also be able to have a positive effect," emphasized Bürkl.