BERLIN – German consumers, previously known to stop spending at the slightest sign of economic turmoil, seem to be becoming immune to financial crises.
Despite threatening economic indicators and a daily diet of negative headlines, including the potential bankruptcies of major German companies such as Karstadt parent Arcandor and carmaker Opel, the German consumer climate remained stable in May.
In a report published today, Nuremberg-based market research firm GfK said “consumer propensity to buy remained virtually unchanged at a good level” in May. GfK is moreover forecasting this would continue in June for the fourth month in a row.
GfK said moderate prices are helping to bolster consumer spending, and “consumers can look forward to continued falling prices … currently supporting the consumer propensity to buy.”