Survey results show that German people's consumption willingness has dropped for the third time in a month.
Consumer sentiment is at the bottom of the trough
According to German media reports, various signs indicate that the retail industry's business during Christmas will be disappointing this year. According to monthly survey data from the German Retail Association (HDE), Germans are unwilling to consume than ever before. Consumers' willingness to consume fell to 81.14 points, the lowest level since the survey began and the third decline in a month.
Source: Tagesschau
It is understood that the main reason for the decline in consumption intention is the high prices of energy and food, coupled with the uncertainty brought about by the difficulties in the economic situation.
German Retail Association found that in daily consumption, such as in supermarkets, people's willingness to consume has also continued to decline, reaching the lowest level ever.
Less room for funds
According to HDE, business this Christmas may become more difficult for retailers. Due to high inflation , while income still has not increased much, real income is sinking. As a result, the financial leeway for consumer spending and savings is reduced.
Source: Tagesschau
Recession may be coming
The actual development of consumption before Christmas may also be affected by policies in the coming weeks. The federal government is planning to provide consumers and businesses with another relief measure to buffer the pressure brought by energy, with specific plans including electricity price limits, natural gas price limits, etc.
