HDE consumption barometer in February
The current infection situation and the ongoing Corona measures are putting a further damper on consumer sentiment in February. As the HDE consumer barometer shows, the index has fallen for the third month in a row. Consumers are particularly cautious when it comes to planned purchases and economic expectations. At the beginning of 2022, private consumption is therefore expected to be rather subdued.
The propensity to buy collapsed compared to the previous month and reached an all-time low. In view of the lack of consumer opportunities, pandemic-related restrictions on local shopping and the uncertainty regarding the further development of Corona, consumers are refraining from making larger and postponeable purchases. The propensity to save also decreases. This means that consumers want to invest less income in consumption in the next few weeks and at the same time put less money in their savings account. This does not result in a consistent picture, even given the recent positive assessment of the income situation. Your own income expectations increase compared to the previous month and the previous year. There is optimism when the labor market is stable.
However, consumers are critical of overall economic developments. Your economic expectations have become increasingly cloudy since the summer of 2021. This negative trend continues. Against the background of the current wave of infections, consumers and economic research institutes are not expecting an economic recovery any time soon. In addition, the high inflation rate and the expectation of increasing price increases are weighing on consumer sentiment.
The new year begins with a clouded mood among consumers due to the pandemic. Due to the significant decline in the propensity to buy, private consumption is expected to develop subdued in the first quarter. A trend reversal can only be expected once the current corona wave has ended and the number of infections has waned.
