Trade Association: Consumer Mood in Germany Deteriorates Again After Improvement in October - Consumer Confidence Plummets Ahead of Crucial Holiday Season
The retail sector braces for the critical holiday shopping season as consumer confidence plummets. The Consumer Confidence Index in Germany has dropped to 95.57 points in November, a significant decline from 100.70 in October. Income expectations have also deteriorated, with the relevant sub-index falling to 95.73 points.
The last two months of the year are typically the busiest for retail, but the tense labor market and lack of financial relief measures have consumers tightening their belts. They are adjusting spending and savings in anticipation of potentially lower disposable income. The German Retail Federation (HDE) remains hopeful that fiscal policies stimulating broader economic growth could lead to a rebound in consumer optimism by 2025.
The retail sector faces a challenging holiday season due to the decline in consumer confidence. While the German Retail Federation hopes for a recovery in consumer optimism, retailers must navigate the current uncertainty and plan accordingly for the crucial shopping period.
