After the consumer mood in Germany recovered at the end of 2023, consumers are once again more pessimistic about the future in the new year. This was revealed by the consumer barometer for January published by the German Retail Association (HDE), which is compiled monthly by the Handelsblatt Research Institute (HRI) on behalf of HDE. The index is down compared to the previous month but remains above the previous year’s level. Uncertainty and a correspondingly dampened mood are mainly due to budgetary developments and the economic outlook.
Consumers’ reluctance to spend, which was already noticeable during the holiday season, will likely continue in the first weeks of 2024. While the propensity to buy is higher than a year ago, there is a decline compared to the previous month. At the same time, consumers’ propensity to save is only increasing marginally. Uncertainty regarding possible additional financial burdens will likely play a significant role here. Against this backdrop, private consumption is likely to remain sluggish in the coming weeks and months.
