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Germans spend more – fear of rising prices

Germans spend more – fear of rising prices
Germans spend more – fear of rising prices

The prices rise faster – and with them the consumer mood. One reason for this: Many consumers fear that they will have to pay even more for their purchases in the future.

People in Germany are currently spending money because they are afraid of rising prices. This is a result of the latest study by the Nuremberg-based consumer research company GfK, which was presented on Wednesday. The desire to buy leads to a comparatively positive consumer climate – better than it has been since April 2020.

The weaker expectations regarding household incomes and the general economy did not affect the current positive mood. Compared to the previous month, there was once again a slight improvement overall.

“The German citizens apparently expect further price increases. That is why they consider it advisable to bring forward purchases in order to avoid even higher prices,” said GfK consumer expert Rolf Bürkl. “If the upward price trend were to persist, this would, however, put a strain on the consumer climate and a fundamental recovery is likely to be delayed further,” he emphasized.

“Consumers remain confident”

While the propensity to buy is currently increasing and the propensity to save is falling, people are also becoming increasingly skeptical about household income and the general economic situation. The latter is primarily due to production losses in the automotive industry, for example. Important raw materials such as computer chips are missing there – production is sometimes only running on the back burner, and employees fear short-time work.

Overall, however, consumer sentiment is still well above the level of the previous year. “The good level shows that consumers remain confident about the recovery of the German economy,” said consumer researcher Bürkl.

An increasing mood to buy can also be a problem

For the study, the GfK researchers conducted 2,000 consumer interviews between September 30 and October 11. The study is part of a long-term study commissioned by the EU Commission.

From an economic point of view, the increasing mood to buy can also become a problem. If the demand for goods and services increases, many companies should be able to push through further price increases. This can set in motion an inflationary spiral that is difficult to stop.

Source

Germans spend fear rising prices

 
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