Consumer sentiment in Germany continues to languish as the GfK Consumer Sentiment Index for September slipped to -25.5, missing market expectations of -24.3 and marking a decline from last month’s -24.6.
“The consumer sentiment is currently not showing a clear trend, neither downward nor upward – and that at a very low level overall,” stated Rolf Bürkl, consumer expert at GfK.
Adding to the gloom, Bürkl warned, “The chances that consumer sentiment can sustainably recover before the end of this year are dwindling more and more.”
He cited “persistently high inflation rates, especially for food and energy supplies,” as the main obstacles hindering any meaningful advance in consumer sentiment.
The sub-components of the index painted an equally disheartening picture. Economic expectations in August plummeted from 3.7 to a worrying -6.2, marking the lowest level since last December’s -10.3. Meanwhile, income expectations saw a significant drop from -5.1 to -11.5. The propensity to buy, another crucial sub-index, also declined, falling from -14.3 to -17.0.
