German consumer sentiment hits new low in Nov. ’24

Germany’s consumer sentiment took a significant hit in November, as income expectations and the willingness to buy both declined.

The consumer climate index for December dropped by 4.9 points, reaching -23.3, a level similar to December 2023 and the lowest since May 2024. This setback comes despite a brief recovery earlier in the year. It is attributed to a sharp fall in income expectations, which reached a nine-month low, and a slight decrease in purchasing willingness.

Consumers are increasingly prioritising savings, a trend reflected in the 4.7-point rise in the savings indicator. Concerns about job security, due to industry job cuts, offshoring, and rising insolvencies, have further dampened confidence.

The economic outlook also remains bleak, with the general economic indicator falling to -3.6 points, marking the fourth consecutive decline and the lowest since February 2024. Revised growth forecasts now predict only modest growth of 0.4 per cent for the next year, reinforcing fears of a recession.

Attribution: NielsenIQ

Subediting: Y.Yasser