German consumers keen to spend

01 July 2010

NUREMBERG: Consumers in Germany are displaying a greater interest in making purchases in a range of product categories, despite the uncertain economic climate.

GfK, the research firm, surveyed 2,000 adults in order to gain an insight into popular perceptions regarding the overall financial outlook as well as contributors' views about their personal circumstances.

The barometer of economic expectations actually climbed by 1.6 points in June compared with the previous month to 5.5 points, an increase of 28 points year-on-year.

Looking to their individual situation, the number of participants who thought their salaries would rise dropped by 15.5 points in June to 8.2 points, although this marked an uptick of 11.5 points on 12 months ago.

Anxiety related to GDP growth also declined by 10% in this period, with just 26% of respondents now naming this area as one of their primary concerns at present.

Elsewhere, the "propensity to buy" index jumped by 12.3 points to 30.4 points, the highest total on record since September 2009, and a trend that has defied anticipation of rising prices among shoppers.

One major factor behind this trend was argued to be the current FIFA World Cup in South Africa, which has resulted in a "one-off boom" for certain industries.

In the consumer electronics sector, for example, more flat screen televisions have been sold over the past few weeks than in the last year.

In the final week of May alone, sales were 58% higher than in the same week in 2009, GfK reported.

Data sourced from GfK; additional content by Warc staff