Consumers in Germany are more pessimistic than ever before, reports market researcher GfK. This is mainly because food and energy are becoming more expensive at a rapid pace.
A consumer confidence indicator from the research firm fell to minus 27.4. A month earlier, that was still minus 26. The Germans became more pessimistic about making large purchases, among other things, due to the high inflation.
“If more has to be paid for energy and food, then there are fewer financial resources available for mainly larger expenditures,” says expert Rolf Bürkl of GfK, following measurement for July.
Germany, the largest economy in the European Union, is the Netherlands’ most important trading partner. If Germans spend less, this could also have consequences for Dutch businesses.
Confidence is also declining in other countries. In France, consumers looked more gloomy about the near future for the sixth month in a row in June, the country’s national statistics agency reported. A week ago, Statistics Netherlands (CBS) reported that Dutch consumer confidence had fallen to an all-time low.
Prices are rising, partly due to the Russian invasion of Ukraine, which has caused high energy prices due to concerns about the availability of gas and oil. In addition, many logistics chains worldwide have been disrupted for some time by the corona pandemic, which contributes to scarcity.
Central banks have raised interest rates in response to high inflation or have announced they will do so soon, as the European Central Bank (ECB) recently did.