Germany’s GfK Consumer Sentiment for September took a sharper downturn than expected, falling from -18.6 to -22.0, below the anticipated -18.3.
August saw significant drops in key indicators: economic expectations plummeted from 9.8 to 2.0, income expectations nosedived from 19.7 to 3.5, and the willingness to buy dipped further from -8.4 to -10.9. Conversely, the willingness to save increased from 8.0 to 10.7, indicating a cautious approach to spending.
According to Rolf Buerkl, consumer expert at NIM, “Apparently, the euphoria of German consumers triggered by the European Football Championship was only a brief flare-up and faded after the end of the tournament.”
He added that “negative news about job security is making consumers more pessimistic and a fast recovery in consumer sentiment seems unlikely.”
The decline in sentiment is exacerbated by slightly rising unemployment rates, an increase in corporate insolvencies, and staff reduction plans at various companies in Germany. Buerkl concluded, “Hopes for a stable and sustainable economic recovery must therefore be further postponed.”
