An upswing in the consumer climate is unlikely, even towards the end of the year. While income expectations rose, economic expectations and the propensity to buy fell. Following the revised 4.8 points in November, the consumer climate forecast for December is 4.3 points.

The boundless optimism expressed by Germans in the summer of 2007 in terms of future economic development now appears to be somewhat tempered. In November, the indicator dropped 15 points to its present level of 24.1. However, this is still markedly above the average for the previous months and still 14 points higher than in the same period last year.

After dropping for the past five months, income expectations were slightly up for the first time this year. This could represent a stabilization of the indicator, which at its current level of 0 points, means that income expectations are precisely at their long-term average and a good 6 points above their level at the same time last year.

In spite of the stable development of income expectations, the propensity to buy once again fell in November. At 8.9 points down, the indicator currently stands at -21.8. A similarly low value was last recorded in summer 2005.

The lower propensity to buy led to a drop in the consumer climate. However, the downward trend has slowed down significantly towards the end of the year, a situation attributable to the fact that November has not seen any increase in the savings ratio. Following the revised level of 4.8 points in November, the indicator is forecasting 4.3 points for December.