Berlin: Consumer sentiment in Germany “deteriorated massively” in April due to the Russia-Ukraine conflict, according to the Consumer Barometer published by the German Retail Federation (HDE).
The index tracks German consumers’ propensity to buy and to save, their financial situation as well as other factors relevant to consumption. It has declined for five months in a row to its current all-time low, according to the monthly HDE survey of 1,600 German consumers.
Like the Covid-19 pandemic two years ago, the Russia-Ukraine conflict has worsened German consumers’ economic expectations, Xinhua news agency reported.
According to the HDE, the “looming deterioration in the overall economic situation” also had a negative impact on consumers’ income expectations.
The probable consumption and savings behaviour has been strongly influenced by the rising inflation figures, the HDE said.
While energy prices in particular have risen sharply in recent weeks, German consumers are expecting further price increases in the coming months.
Germany’s inflation rate climbed to a 40-year high of 7.3 per cent in March, according to preliminary figures released by the Federal Statistical Office (Destatis).
Prices for goods rose by 12.3 per cent year-on-year, while energy prices even increased by 39.5 per cent.