Connect with us

Tech

Losses of purchasing power continue to deteriorate the consumer climate

Published

on

Losses of purchasing power continue to deteriorate the consumer climate

In their most recent surveys, GfK market researchers have come to the conclusion that large losses in purchasing power lead to a continuous fall in consumer sentiment. GfK forecasts -42.5 points for consumer sentiment for October 2022, down 5.7 points from September this year (revised -36.8). These are the results of the GfK consumer climate study for September 2022.

The main reason for the drop in consumer confidence is lower income expectations this month. The indicator lost 22.4 points and fell to -67.7 points. This is a new all-time low. Since the start of the surveys for the whole of Germany in 1991, no lower value of the income outlook has been measured. High inflation rates of around 8% lead to significant real income losses.

Many households would simply have to set aside a lot more money for energy or for much higher heating bills. Therefore, there is less money left for other purchases. According to GfK, the consumer climate is unlikely to recover in the coming months either. Because it is currently not predictable when inflation might weaken again. In any case, the so-called propensity to buy again had to accept losses. The indicator lost 3.8 points and now shows -19.5 points. This is the lowest value since October 2008. According to GfK, a lower value of -20.1 points was measured during the financial and economic crisis.

Economic expectations fell by 4.3 points to -21.9 points. This is the lowest value since the financial and economic crisis. In May 2009, a lower value was last measured at -26 points. Compared with the corresponding period of the previous year, the minus is more than 70 points. A recession is increasingly likely for Germany, as some companies have already shut down production due to high energy prices and a weakening market.

Of course, one can argue about the reliability of GfK’s data: around 2,000 consumer interviews were conducted on behalf of the European Commission. Such surveys are always error prone and can only give a clue.

# Insight product Price
1

Hisense 32AE5500F 80 cm (32 inch) TV (HD, Triple Tuner DVB-C/ S/ S2/ T/...

Hisense 32AE5500F 80 cm (32 inch) TV (HD, Triple Tuner DVB-C/ S/ S2/ T/…

€155.99
2

Hisense 43A6GG 108 cm (43 inch) TV, 4K UHD, Smart TV, HDR, Dolby Vision,...

Hisense 43A6GG 108 cm (43 inch) TV, 4K UHD, Smart TV, HDR, Dolby Vision,…

€339.00
3

TCL 43BP615 (108cm) 43-inch LED Smart TV (4K Ultra HD, HDR 10, Triple...

TCL 43BP615 (108cm) 43-inch LED Smart TV (4K Ultra HD, HDR 10, Triple…

€299.99

This article contains affiliate links, so we mark it as advertisement. By clicking on it, you will directly access the supplier. If you decide to make a purchase there, we will receive a small commission. Nothing changes in the price for you. Thank you for your support!

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending