German consumer sentiment remains at low level

Source: Xinhua | 2020-06-03

Despite the gradual easing of COVID-19 measures, German consumer sentiment remained at a low level in June, according to the consumption barometer of the German Retail Federation (HDE) published on Tuesday.

The HDE consumption barometer showed "only a slight upward trend" with a value of 93.51 points in June, which was 2.98 points more than in May after its historic low, according to HDE.

The HDE consumption barometer is published monthly and is based on a survey of 2,000 people on their propensity to buy, savings propensity, financial situation and other consumption-related factors. It depicts the expected mood in the coming three months.

However, according to HDE, a further positive development for the coming months was not yet foreseeable. The outlook for the coming weeks would be characterized by great uncertainty. "Negative swings could quickly lead to a more pessimistic consumer mood again."

According to HDE, Germany's consumers were still "far away" from a good consumer mood. This was also shown by the Germans' increasing propensity to save. Consumers were apparently still skeptical about medium-term development and are building up financial cushions, HDE said.