HDE consumer barometer in July
Consumer sentiment in Germany continues to improve. As the current consumer barometer of the German Retail Association (HDE) shows, the upward trend continued in July. Although the index is increasing slowly, it has reached its highest level in a year. It is expected that the positive trend in consumer sentiment will continue, albeit not gain significant momentum. If consumers remain optimistic, a recovery can be expected in small steps.
The fact that no major jumps in private consumption are expected in the near future is primarily due to consumers' lower propensity to buy compared to the previous month. At the same time, they are more likely to reduce their savings efforts in the coming weeks and months and draw on savings.
The reason for this trend in consumer spending and savings activity is likely their more pessimistic view of their own income. Their expectations for the future development of their own income situation have deteriorated significantly compared to the previous month. Consumers' financial optimism, which still prevailed last month, may have been dampened by the federal government's announced but not yet implemented relief measures. Consumers, however, remain optimistic about economic developments.
