The desire to buy in Germany is falling: experts predict that the consumer climate will fall to minus 28.1 points

The desire to buy in Germany is falling: experts predict that the consumer climate will fall to minus 28.1 points

According to a report by the Nuremberg market research company GfK and the Nuremberg Institute for Market Decisions, the consumer climate in Germany is forecast to be minus 28.1 points for November. This is a further decline in the willingness of people to buy in the country. Before the corona pandemic and the current international crises, the consumer climate was around plus ten points. Consumer expert Rolf Bürkl explains that hopes of a recovery in consumer sentiment this year must finally be buried. The survey of around 2,000 people showed a mixed picture: While consumers were somewhat less skeptical about the economy, they were more pessimistic about their future finances.

Weak economic development, rising prices and uncertain future prospects are influencing consumers' desire to buy in Germany. In particular, the high prices for food weaken the purchasing power of private households and mean that they hardly buy large consumer goods such as furniture or refrigerators. The last time the desire to buy was lower was in 2008 during the financial crisis. In addition, concerns about job security are increasing among many employees, exacerbated by increasing company bankruptcies, which also lead to uncertainty.

Current inflation rates also have a negative impact on household purchasing power and prevent a sustainable recovery. In order to stimulate consumption, prices would have to rise less sharply. However, the forecasts for German income are rather negative due to current inflation.

It is important to note that the values ​​provided are sentiment indicators. Even when consumers say they want to make major purchases, it doesn't necessarily mean they will actually do so due to financial constraints.

These developments have an impact on the market and the financial industry. Companies must prepare for lower demand for consumer goods, particularly in the areas of furniture and household appliances. Retailers will also be affected by the reduced desire to buy. Banks and financial services providers may require increased borrowing as consumers may need financing to make larger purchases. Uncertainty around job security could also lead to increased demand for insurance.

It remains to be seen how these developments will affect the economy and consumption in Germany in the future. However, it can be assumed that companies and consumers will have to prepare for a longer phase of low purchasing desire, which will also have an impact on the financial sector.

Source: According to a report from www.zeit.de