Consumer confidence On the decline

von Marco Hübner
Dienstag, 05. Mai 2020
Shopping street in Essen: Despite many loosenings of corona restrictions in the retail sector, significantly fewer people have so far ventured into the shops.
imago images / Michael Kneffel
Shopping street in Essen: Despite many loosenings of corona restrictions in the retail sector, significantly fewer people have so far ventured into the shops.
The mood of consumers in Germany has reached a new low. The monthly consumer indicator dropped more sharply from April to May than ever before in its history, according to the German Retail Association (HDE).
The index of the monthly consumer barometer slipped from 96.66 to 90.53 points, losing more points than ever before, HDE reported on Monday. Due to the corona crisis, it has reached a new low since the surveys began in October 2016.



The current pandemic is becoming increasingly apparent in consumer sentiment, states HDE. Despite loosening some of the strict measures, pessimism continues to grow. The clear reluctance of consumers to spend can primarily be attributed to increasing uncertainties regarding the further development of the labour market.

Most consumers expect to have less money in their pockets in the future, says HDE. The reluctance to spend is continuing, and the association's analysts are not very optimistic, even if there are more restrictions lifted in the retail sector: "Private consumption will continue to be characterized by restraint for a very long time to come", they conclude.

The HDE consumption indicator is published monthly and based on a survey of 2,000 people, being interviewed about their buying or saving intentions, their financial situation and other consumption-related factors. As early as April, the barometer recorded clearly declining values across all categories.

Coronavirus (Symbolbild)
imago images / ZUMA Press

This text was originally published in German and machine-translated into English.

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