German shoppers in prudent mood

23 December 2009

NUREMBERG: Consumers in Germany remain unwilling to make major purchases, and trading conditions are unlikely to improve next year, GfK has warned.

The research firm surveyed 2,000 people in the European nation, and found that the forward-looking confidence index for January stood at 3.3 points, down from the total of 3.6 points recorded for this month.

In terms of overall economic expectations, popular sentiment registered an uptick of 0.8 points, to 1.7 points in all, in December, and was also up by more than 34 points on an annual basis.

However, the "propensity to buy" barometer slipped by 5.1 points, to 21.2 points, a result attributed to the possibility of rising prices and energy costs, among other factors.

Overall, GfK argued "the consumer climate has proven to be highly robust and resistant in the face of the serious financial crisis this year."

"We are currently not anticipating a slump in consumption in 2010, even though the year will also be a difficult one," the company added.

Data sourced from GfK; additional content by Warc staff