Consumer confidence in Germany has taken a major hit this month due to rising unemployment, more bankruptcies and a poor economic outlook, according to the latest figures published on Tuesday by two consumer research institutes.
In the September forecast from GfK and NIM, the consumer climate index is now only minus 22 points, a deterioration of 3.4 points, the institutes report.
Before the corona pandemic, the index was relatively stable around plus 10 points.
Expectations for income and economic growth have fallen, as has consumer spending, while the savings rate has risen.
“Apparently, the euphoria of German consumers caused by the European Football Championship was only a short-lived flash and disappeared after the tournament. In addition, negative news about job security makes consumers more pessimistic and a quick recovery of consumer confidence seems unlikely,” says Rolf Buerkl, consumer expert at NIM.
“The slightly rising unemployment figures, an increase in corporate bankruptcies and staff reduction plans at several companies in Germany are making employees worry about their jobs. Hopes for a stable and sustainable economic recovery must therefore be postponed further,” he added.
Private households see their financial situation in the coming 12 months as considerably less rosy than a month ago. The income expectation indicator lost 16.2 points.
“The last time there was a more significant decline in income sentiment within a month was almost two years ago, in September 2022,” the two institutes reported, but inflation figures were significantly higher then.
For the monthly survey, consumer researchers this time interviewed approximately 2,000 people from August 1 to 12.
The study was commissioned by the European Commission.
