Private consumption in Germany will not be a major driving force for the country’s sputtering economy next year after a rather mixed Christmas season so far, according to a consumer survey by the German market research groups GfK and NIM.
“A sustained recovery in the consumer climate is still not in sight, as the uncertainty among consumers is still too great,” said consumer expert Rolf Bürkl on Thursday at the presentation of the monthly consumer climate study released by the two Nuremberg-based firms.
However, the buying mood has at least improved somewhat recently, with both consumer income expectations and the propensity to buy ticking upward in December, the institutes reported. At the same time, the propensity to save declined somewhat.
For January, the GfK survey forecasts a slight improvement in the consumer climate, which nonetheless remains poor in a long-term comparison.
“After the slump in the previous month, consumer sentiment is improving slightly, but can only partially compensate for the previous declines,” said Bürkl. “Looking back, we have seen a stagnating trend at best since mid-2024.”
The main reason for the reduced sentiment is high food and energy prices, the groups found. In addition, concerns about job security are growing in light of numerous reports of job cuts, the report noted.
Households’ expectations regarding their income have also recently recovered somewhat. However, they are currently significantly worse than several months ago, according to the report.
The groups said that weak growth forecasts by economic researchers and rising unemployment have been holding back a recovery in consumer sentiment, however.
GfK surveys 2,000 consumers every month for he study on behalf of the European Commission. The latest survey was carried out from December 5 to 16.
Source: dpa.com