Germany's HDE consumer barometer dropped to 94.85 points in April, its lowest since February 2024. Consumers anticipate rising prices and interest rates, weighing on private spending. The plunge is linked to the Iran war and surging energy costs.
In Düsseldorf, Germany's HDE consumer barometer signals a sharp downturn in consumer sentiment. Calculated monthly by the Handelsblatt Research Institute for the Handelsverband HDE based on a survey of around 1600 households, the April reading of 94.85 points is the lowest since February 2024. Expectations for the business cycle and personal incomes have worsened.
Savings propensity is declining as households redirect funds to cover elevated energy costs. Consumers foresee increases in prices and interest rates, pressuring private consumption.
The mood shift stems from energy price surges triggered by the Iran war. Since late February, following attacks by the US and Israel on Iran, diesel prices have risen by about 50 cents per liter and super fuel by around 30 cents.
