The survey by the GfK Institute revealed that German consumer sentiment deteriorated towards September due to accelerating inflation and a rise in COVID-19 infections, causing them to be more reluctant to buy.
According to Arabiya Net, the GfK Research Institute said its consumer sentiment index, based on a survey of nearly 2,000 Germans, fell to -1.2 points for the month of September. / September, from a revised reading of -0.4 points a month ago, and compared to a Reuters expectation of a reading of -0.7.
Prices have been rising at a rapid pace since the middle of this year, Rolf Burkel, a consumer expert at GfK, said in a statement. This has a dampening effect on consumer sentiment.
Coordinated annual consumer prices in Germany rose 3.1% in July, hitting a 13-year high and fueling debate over whether the rise in the cost of living will continue.
Burkel added that the rise in coronavirus infections and the slowdown in vaccinations had also hurt consumers' expectations of the economy and affected their propensity to buy.
The consumer sentiment index predicts the development of real private consumption in the next month.
A reading above zero indicates year-on-year growth in private consumption, while a reading below zero indicates a decline compared to the same period a year ago.
According to GFK, a point change in the index equates to a 0.1% year-on-year change in private consumption.
