Consumer Climate: Renewed Confidence.
Overall, the mood remains considerably less positive in eastern than in western Germany. While students and trainees and those with a higher income are predominantly positive in their attitude, the mood remains pessimistic among those disposing of a lower income and the older retired generation.
The overall development suggests that the election scheduled for September is having a positive effect on consumer mood. This does not mean, however, that the consumer climate will be affected positively in the long-term.
Economic outlook Income Propensity to expectations buy August August August Figure(1) Change Figure(1) Change Figure(1) Change on on on previous previous previous month month month(1) Students and +0.4 +4.9 +34.7 +11.4 -7.4 -13.9 trainees High +3.6 +10.2 +20.5 +1.7 +24.8 +7.9 income(2) Medium -8.4 +8.1 -13.3 +6.2 +1.0 +20.1 income(2) Low -11.5 +13.4 -18.6 -6.2 -17.4 +13.7 income(2) Older -28.5 -8.5 -45.2 -1.4 -23.4 -5.6 retired people Western -6.8 +6.5 -6.3 +2.6 +3.1 +9.5 Germany Eastern -30.2 -4.5 -26.8 +5.1 -33.4 +4.2 Germany Total -11.6 +4.1 -10.6 +4.2 -4.5 +8.6 (1) Indicator points. 0 is the long-term average. (2) Employed people and housewives/househusbands
It is impossible to predict whether the positive signs mark the beginning of a trend reversal. This is due to the fact that oil prices are high and likely to increase further and that the propensity to make major purchases probably represents an immediate effect of such purchases being made sooner than planned in anticipation of price hikes. Whether private consumption really is experiencing an upward trend will largely depend on the extent to which fuel price increases and higher consumer taxes will affect the budgets of private households.
A fundamental trend reversal in consumer behaviour will only come about following a sustained improvement in economic development and the employment market. It is evident that people are longing for positive signs in this respect and are also willing to contribute to an improvement in the situation by spending and generating a marked rise in the demand for consumer goods.
Contact: Dr. Ulrike Schoeneberg, +49-(0)911-395-2645, firstname.lastname@example.org
Dr. Ulrike Schoeneberg, +49-(0)911-395-2645, email@example.com
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|Publication:||PR Newswire Europe|
|Date:||Aug 29, 2005|
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