Consumer sentiment in Germany has shown signs of recovery as the HDE Consumption Barometer rose to 94.64 points at the start of the critical Christmas shopping season. This increase of approximately one point reflects a more positive outlook among consumers regarding the coming months, buoyed by improved economic indicators and the introduction of a new fuel discount.
According to the monthly survey conducted by Handelsblatt Research Institute for the HDE trade association, expectations for both the general economy and personal income development have strengthened. Simultaneously, concerns regarding inflation and rising interest rates have diminished slightly, leading to an increased willingness to make purchases. The data suggests that the new fuel discount is already having a psychological impact on consumer behavior.
The barometer is derived from a representative survey of approximately 1,600 households, utilizing various weighted sub-indicators to calculate the final index. This uptick in consumer mood aligns with a broader trend of improving economic data observed over recent weeks. The Ifo Business Climate Index from Munich has risen for six consecutive months, with business expectations showing particular improvement.
Furthermore, both the federal government and economic researchers have raised their growth forecasts for 2026 and 2027. Supporting this optimistic trajectory, the Federal Statistical Office reported that the German economy grew by 0.2 percent in the third quarter, a figure that exceeds projections made by the Bundesbank.
Sources: Handelsblatt.