German consumers continue to hold their money together. Expectations regarding income are increasing.
But a high propensity to save and little hope for a better economy led to larger purchases being postponed. The poor mood is also depressing companies' willingness to hire new staff. Ifo, in industry, for example, the signs continue to point to staff cuts, but also for retail. The weak consumption development is particularly a problem for stationary retail. Current business should be managed with fewer staff, says Klaus Wohlrabe.