Good expectations for the German market

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GermaniaAccording to GfK Retail & Technology, in 2014 Germany recorded good performances in the technical consumer good areas. Major domestic appliances closed the first nine months with a value of 6,150 million euro and an increase of 4.4% compared to the same period of the previous year. Small domestic appliances grew by 3.8%, confirming the good phase of the market, that is witnessed also by the willingness to buy index.
After a third consecutive increase, the indicator is up 1.6 points to 49.1 points. It is therefore just under the 50 point mark, which it last exceeded in July 2014.
Propensity to consume is currently benefiting from the major collapse in energy prices. Heating oil and fuel have become considerably cheaper. As a result, private households have greater financial freedom for making other purchases. “This is good news for retail” – underlined a GfK press release. In addition, the fact that propensity to save dropped to a record low in December has also boosted the spending mood. Following a value of 8.7 points in December, the overall indicator is fore-casting 9.0 points for January 2015. The consumer climate is therefore in a strong position and is an indication that economic development should be good in 2015.