In its monthly study in Germany this May, GfK market researchers found consumer sentiment “rather bright than muted,” caused by falling illness rates and success in Covid-19 vaccinations. With more employees coming out of short-time work and incremental re-openings of stores and restaurants, conditions are good for a significant recovery in consumer sentiment. As a result of the lockdowns, broad sections of private households have substantial financial reserves. This is reflected in the increased savings rate of private households, which rose to roughly 16 percent during the pandemic. In 2019, it was still between 10 and 11 percent. This means that considerable funds are available for potential catch-up effects.
In contrast to income expectations, the propensity to buy is apparently unable to benefit from the rise in economic optimism. After three consecutive increases, the propensity to buy suffered moderate losses, with the indicator dropping 7.3 points to a current value of 10 points. This is still 4.5 points higher than the corresponding figure for the previous year. Despite the openings and easing measures that have been implemented or announced to date, a number of consumption options, especially in service sectors, are still not available or only possible to a very limited extent. This is likely to put the brakes on any noticeable revival in consumers’ shopping wishes at present.
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