2024-02-29 09:45:51
Consumers in Germany remain cautious: the high propensity to save is putting pressure on the consumer climate. After all: income expectations have risen significantly.
According to the latest survey by market research institutes GfK and NIM, consumer sentiment only brightened slightly in February. Expectations regarding income are increasing. But the tendency to save and little hope for a better economy led to larger purchases being postponed, the institutes said.
“Consumers are very unsettled. In addition to the continued rising prices, weaker economic forecasts for the German economy this year are certainly an important reason for this,” explained Rolf Bürkl, consumer expert at the Nuremberg Institute for Market Decisions (NIM). The propensity to save has reached its highest level since the financial crisis of 2008/2009.
The federal government’s economic forecast has been significantly reduced. “Germany must continue to wait for an economic recovery,” emphasized Bürkl. Even at the beginning of 2024, consumers see no signs of a sustainable recovery in the German economy.
Market researchers expect “noticeable real income increases”
For the consumer climate, the Nuremberg market researchers are forecasting a value of minus 29 for March after minus 29.6 in February. Before the corona pandemic, the consumer climate was comparatively stable at around plus ten points. Expectations regarding income are primarily responsible for the slight improvement.
The indicator for income expectations climbed to its best value since February 2022. The optimism is not unfounded. “Significant wage and pension increases in conjunction with less rising prices will lead to noticeable real income increases,” predict the market researchers. The inflation rate was only 2.9 percent in January.