German consumer morale drops heading into September- GfK

Reading Time: < 1 minute

The mood among German consumers darkened heading into September as accelerating inflation and rising COVID-19 cases made them more hesitant to buy, a survey showed on Thursday.

The GfK institute said its consumer sentiment index, based on a survey of around 2,000 Germans, dropped to -1.2 points for September, from a revised -0.4 points a month earlier. The reading compared with a Reuters forecast for -0.7. “Prices have been rising rapidly since the middle of this year.

This has a dampening effect on the consumer mood,” GfK consumer expert Rolf Buerkl said in a statement. Germany’s harmonised annual consumer prices rose 3.1% in July, hitting a 13-year high and fuelling a debate about whether the increase in the cost of living will persist.

An increase in coronavirus infections and a slower pace of vaccinations have also hit consumers’ expectations for the economy and affected their propensity to buy, Buerkl added.

Germany reported 11,561 new coronavirus infections on Wednesday and a seven-day incidence rate of 61.3 per 100,000 people, according to the Robert Koch Institute for infectious diseases. Some 59.4% of the population are fully vaccinated with around 64.4% having received at least one dose.