August brought a noticeable shift in the public's mood, as noted by NIM consumer expert Rolf Bürkl. The brief surge in saving habits saw a minor improvement by 2.7 points, but it failed to uplift the general sentiment.
Job losses, bankruptcies, and imminent layoffs have sparked worries within the workforce, as highlighted by survey findings. Bürkl proposed that the anticipation for a long-term, secure economic recovery should be temporarily shelved.
The research revealed that Germans were less optimistic about their financial situation within the next 12 months compared to the previous period. The income expectations index fell dramatically by 16.2 points to a meager 3.5 points. The last time such a significant drop occurred within a month was two years ago, according to NIM and GfK.
This pessimism extended to consumer tendencies, despite the indicator maintaining a negative value of -10.6%. While damage isn't severe at 2.5 points, the growth over 6 points compared to the previous year remains.
Economic expectations showed volatility in August, following a significant surge in July and a subsequent drop of 7.8 points, settling at 2.0 points. GfK and NIM regularly interview around 2,000 consumers each month for their surveys, which cover all personal consumer spending, such as retail, services, travel, rent, and healthcare services.
The survey conducted between August 1 and 12 revealed a decline in economic expectations, and this pessimism was also observed two years ago.
The worsening overall mood and economic expectations in Germany can be attributed to factors such as a sluggish economic recovery, increased layoffs and factory closures, rising inflation concerns, and an uncertain economic policy environment. These challenges have contributed to a challenging economic climate.
