A sudden increase in the tendency to save has caused the consumer climate in Germany to drop to a record low. This was determined by the Nuremberg consumer research company GfK in its new consumption study, which was published on Friday.
“The sudden increase in the propensity to save this month has allowed the consumer climate to continue its steep descent. It has once again reached a new record low,” said GfK consumer expert Rolf Bürkl.
“The fear of significantly higher energy costs in the coming months is forcing many households to take precautions and put money aside for future energy bills. This puts a further strain on the consumer climate, as in return there are fewer financial resources available for other consumption,” said Bürkl. “If households have to pay significantly more for energy and food, they will lack the financial means for other purchases.”
He fears that the problem could worsen in the coming months if there is not enough fuel available. That would drive prices up further, and heating bills would then be even higher. In addition, there is a risk of production restrictions in the companies. From the consumer perspective, the risk of a recession remains high. The omission of the nine-euro ticket and the end of the fuel price tax cut will further boost prices.
For a sustainable recovery of the consumer climate it is necessary to fight inflation, for which above all the European Central Bank (ECB) is required with a less expansive monetary policy. On the other hand, the Ukraine conflict must be resolved – the main reason for the explosive rise in energy and food prices.
