The survey results published by GfK Group and the Nuremberg Institute for Market Decisions (NIM) showed that the forecast consumer sentiment index for December fell to -23.3 points from -18.4 points in November (revised from -18.3 points). The latest reading was the lowest since May. Economists had expected a decline to -18.6 points.
"The final weeks of the year end with a significant setback in consumer sentiment. Consumer sentiment in Germany is therefore currently at a level comparable to the end of 2023. Consumer uncertainty has increased again recently, as evidenced by the rising willingness to save. There is also another uncertainty factor: concerns about job security in Germany are growing. The reasons for this are certainly the job cuts reported by industry and the relocation of production abroad. In addition, the number of insolvencies has risen recently. In short, the consumer climate remains poor,” said Rolf Bürkl, consumer expert at NIM.
GfK said that in November, the willingness to save component rose by 4.7 points to 11.9 points. Meanwhile, the income expectations component fell by 17.2 points to -3.5 points. A worse value was last measured in February, at -4.8 points. Growth forecasts for this year and next have been revised downwards and unemployment has been on the rise again for some time. As a result, consumers are once again less optimistic about their expected income situation. The willingness to buy component decreased by 1.3 points to -6.0 points. Compared to the same period last year, the increase is currently 9 points. However, the level of willingness to buy remains extremely low. Meanwhile, the economic expectations indicator fell by 3.8 points, to -3.6 points. This is already the fourth decline in a row. A lower value for the economic outlook was last measured in February with -6.4 points.