Germany: Consumers are also very pessimistic about their economic future

It is now something obvious, which no one can deny: economic pessimism reigns in Germany, at every level: the GfK consumer climate indicator for Germany fell to -22.0 towards September 2024 from -18.6 revised in the period previous, missing market estimates of -18.0. This is the lowest reading since May, dragged by concerns over job security and intense cost pressure.

Expectations of an improvement in income fell sharply (3.5 versus 19.7 in August/July) , recording the lowest level in almost two years. Furthermore, the economic outlook has collapsed (2.0 vs 9.8) and the propensity to purchase has fallen further (-10.9 vs -8.4).

At the same time, the tendency to save has increased. “It seems that the euphoria for the European Football Championships was only a brief flare-up and disappeared after the end of the tournament,” said Rolf Bürkl, a consumer expert at the NIM. He added that the rising unemployment rate, increase in business failures and staff reduction plans by various companies have caused concerns among families. Hopes for a stable and sustainable economic recovery must therefore be further postponed."

Here is the related graph:

In short, both from the point of view of industry and from the point of view of consumers, there is a negative outlook for the German economy.

Scholz will probably predict a resounding blow in the next elections and we will see if he can survive the collapse of his majority, but, in any case, with the traffic lights there can be no economic growth. The union of environmentalism, extreme austerity and politically correct leads nowhere.

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The article Germany: consumers are also very pessimistic about their economic future comes from Economic Scenarios .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/germania-anche-i-consumatori-sono-molto-pessimisti-sul-proprio-futuro-economico/ on Tue, 27 Aug 2024 08:30:37 +0000.