The high inflation and the uncertainties caused by the Corona situation in autumn are having an enormous impact on consumer sentiment in the country.
The consumption barometer determined by the German Retail Association (HDE) reached “a new all-time low” in September after falling to a record low in August, as the association announced on Monday.
A trend reversal is "not in sight" - so that the coming months will probably be characterized by consumer restraint.
The reasons for people's reluctance are the energy crisis, the high price increases overall and the uncertainties in view of the pandemic.
The barometer does not show the current purchasing behavior of consumers, but the expected mood in the next three months.
Among other things, 1,600 people were asked about their propensity to buy, their propensity to save and their financial situation.
According to the survey, economic expectations clouded over, and personal income expectations also fell.
Added to this is the fact that high inflation is reducing disposable household income.
As a result, the propensity to buy fell further and reached a new all-time low.
Saving is hardly an alternative - the propensity to save is also still low.
As the HDE explained, "additional uncertainties could arise" in autumn with regard to the energy supply and the pandemic.
The association therefore does not expect a noticeable improvement in consumer sentiment “before next spring”.
According to preliminary estimates by the statistical office, inflation in Germany reached 7.9 percent in August.
As in the previous months, this was due to the high price increases for energy and food.