Due to the greater burden of rising energy prices, many have less money for other consumption or shopping.
(Photo: IMAGO/Michael Gstettenbauer)
Berlin The energy crisis and inflation in Germany are pushing consumer sentiment to a record low. The barometer of the GfK market researchers in Nuremberg signals a surprisingly sharp drop of 5.6 points to minus 36.5 points for September. It falls for the third time in a row, as GfK announced on Friday.
Since the consumer mood survey for Germany as a whole began in 1991, no worse value has been measured. “The sudden increase in the propensity to save this month means that the consumer climate is continuing its steep descent. It has once again reached a new record low,” said GfK consumer expert Rolf Bürkl.
The Germans’ propensity to save is higher than it has been since July 2011. “The fear of significantly higher energy costs in the coming months is forcing many households to take precautions and put money aside for future energy bills,” says Bürkl. This puts a further strain on the consumer climate, since less money is available for other consumption or purchases.
In addition, the situation could worsen in the coming weeks and months if the supply of fuels and especially gas is not sufficient in the upcoming heating period. “This would lead to a further increase in prices and additionally drive up heating bills.”
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After two declines in a row, the GfK partial barometer for the economy stabilized and increased minimally. “Despite the slight improvement this month, the risk of recession remains high from the point of view of German consumers,” emphasized the market researchers.
Concern about sharply rising energy prices
Many companies are currently very worried about the development of the recently sharp rise in energy prices. The companies are also unsure whether they will be able to get enough energy at all in the coming winter.
Economists on bad consumer mood
Due to the ongoing supply bottlenecks, there is a risk of production restrictions. “This would make a recession more likely.” Sentiment in the executive floors of the German economy clouded over slightly again in August. This is indicated by the Ifo business climate index, which has fallen for the third month in a row and thus slipped to its lowest level since June 2020.
Earnings expectations fell to a record low last month and now rose marginally in August. “Rising prices nibble on the purchasing power of private households,” it said. Inflation weakened somewhat in July to 7.5 percent, but the end of the fuel discount and nine-euro ticket at the end of August should ensure further price increases.
The willingness of Germans to make larger purchases decreased for the seventh month in a row and fell to the lowest level since the financial and economic crisis in October 2008.
More: Germany is stuck in the energy price trap – “In key industries, companies will close down in rows”