HDE Consumer Barometer February: Improved consumer sentiment
The positive trend in consumer sentiment continues. According to the latest consumer barometer from the German Retail Association (HDE), sentiment brightened in February.
According to the HDE consumer barometer, the index has climbed to its highest level since last summer. Nevertheless, consumer sentiment remains weak. It now remains to be seen whether consumers in Germany will remain unaffected by geopolitical turmoil in the coming weeks, shake off their uncertainty, and allow the upward trend to continue.
Planned consumer spending has hardly changed compared to the previous month. Consumers are not becoming noticeably more reluctant to spend; rather, their propensity to buy is increasing only minimally.
Furthermore, consumers do not intend to save less. Their propensity to save remains almost at the same level as in the previous month. The overall economic and geopolitical environment continues to cause uncertainty and a desire to strengthen personal financial reserves.
HDE: Consumption will increase
However, the period of weakening private consumption is now over. It can be assumed that it will increase in the coming months. However, before a noticeable recovery with significant growth can begin, the economic conditions must improve further.
While companies are showing little enthusiasm at the start of the year and optimism is also waning in the latest economic forecasts, consumers remain confident.
Consumers are optimistic
Their economic expectations are rising, both compared to the previous month and compared to the same month last year. Consumers are thus much more optimistic about the future development of the economy as a whole. This is also reflected in their expectations for their own income situation, which are also rising.
Consumer sentiment in Germany continued to improve in February. Consumers’ hopes for a return to overall economic growth are keeping the positive trend going. However, they are only slowly shaking off their uncertainty in the current volatile environment. A noticeable recovery in private consumption is only to be expected once consumers see the chance for a sustained economic upturn.
The HDE Consumption Barometer, published on the first Monday of each month, is based on a monthly survey of 1,600 people on their propensity to buy, propensity to save, financial situation, and other factors relevant to consumption. The consumer barometer, which is compiled by the Handelsblatt Research Institute (HRI) on behalf of the HDE, serves as an indicator for private consumption. It does not reflect current consumer behavior, but rather the expected mood over the next three months.
