Consumer sentiment in Germany deteriorated slightly again in August. After recovering in the previous month, the consumer barometer of the German Retail Federation (HDE) declined once more. Compared to the previous year, sentiment is significantly weaker.
The German Retail Federation (HDE) cites escalating tensions between Iran and the US as a major contributing factor. Consumers are becoming more cautious with planned purchases and intend to intensify their savings efforts in the coming weeks. Expectations regarding economic development have also dampened.
Income expectations, however, have improved further. They are only slightly below the previous year's level. Furthermore, those surveyed expect the inflation rate to continue to fall.
The HDE Consumer Barometer is compiled monthly by the Handelsblatt Research Institute based on a survey of 1.600 people. It reflects the expected consumer sentiment for the next three months.
