The opinion of German consumers is stabilized with the help of energy solutions -GfK | So Good News

Consumer sentiment in Germany is set to change in December as strong government measures help stabilize levels that have fallen just short of two months ago and still show a slowdown in alcohol consumption, a GfK survey showed on Friday.

The agency said its consumer sentiment rose to 40.2 in December from a negative reading of 41.9 in November, and below the forecast from analysts polled by Reuters of a negative 39.6.

October recorded the lowest reading in more than a decade at 42.8.

The negative reading shows a year-on-year decline in private drinkers.

“Consumers’ long-term fears about rising energy prices have eased somewhat, which has had a slight impact on consumer sentiment,” said GfK consumer analyst Rolf Buerkl.

Although the gas payments to households in December and the price of gas and electricity next year helped to change the mood, the situation is still difficult and there will not be a big, sustainable recovery as long as the doubt about electricity is still there. , added Buerkl.

A subindex measuring willingness to buy was the only one to fall in November, falling to -18.6 from -17.5 in October, as consumers remain invested in anticipation of a burst of strong credit in the coming months, GfK said.

Price watchdog Verivox reported last week that many German households are facing another 50% increase in electricity and gas prices in January due to a reduction in suppliers passing market prices and higher grid costs.

The consumer’s weather indicator predicts the development of real-estate products in the following month.

A reading above zero indicates year-over-year growth in private consumption. A value below zero indicates a decrease compared to the same period last year.

According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1% in special foods.

The “want to buy” indicator represents the boundary between positive and negative responses to the question: “Do you think this is a good time to buy large items?”

Expected income forecasts reflect expectations for growth in the housing market over the next 12 months.

An additional index of business expectations reflects respondents’ assessment of the economic outlook over the next 12 months.
Source: Reuters