German consumers’ pessimism rises amid economic, political concerns: survey

[BERLIN] The economic and political sentiment among consumers in Germany is increasingly worsening, a European survey by Boston Consulting Group (BCG) showed on Tuesday.

The study shows that 62 per cent of Germans view the economic situation negatively, marking an increase of 10 percentage points from the previous year. Similarly, two-thirds express dissatisfaction with the political climate.

The survey, conducted in April among 16,000 consumers across nine European countries, shows that in France and Britain, negative assessments of the economic situation are even more critical, at 70 per cent.

In Germany, almost a third of consumers are worried about their personal financial situation, compared with only 25 per cent last year. Despite declining inflation rates, 70 per cent of respondents are afraid of further price increases, the survey showed.

The perception of geopolitical risks, however, is significantly lower.

Although the survey coincided with the announcement of global tariff increases by the US government in early April, this was a reason for concern for less than a third of the surveyed Europeans.

“Consumers focus on visible price increases, underestimating how strongly trade conflicts can influence prices and supply,” said Karin von Funck, senior partner and consumer goods expert at BCG. REUTERS