German consumer sentiment is projected to hit a record low for the third month in a row in September as households brace for energy bills to go through the roof, a survey showed today.
The GfK institute said its consumer sentiment index, based on a survey of around 2,000 Germans, fell to -36.5 heading into September.
This continues a series of record lows that began in July, with a revised reading of -27.7 and continuing in August with a downwardly revised -30.9 points.
Analysts polled by Reuters expected a reading of -31.8.
"Fear of significantly higher energy costs in coming months is forcing many households to take precautions and put money aside for future energy bills," said GfK consumer expert Rolf Buerkl, who added that doing so was further depressing the consumer climate as there was less money for other purchases.
The institute warned that the situation could become even worse in coming weeks and months if there is not sufficient fuel, especially gas, to heat homes, pushing bills even higher.
German households will have to pay several hundred euros more a year for gas under a levy, to be imposed from October 1 to March 2024, that is meant to help utilities cover the cost of replacing Russian supplies.
The levy, foreseen as being adjusted every three months, could be set higher depending on market conditions, for example, if Russian energy giant Gazprom further cuts its deliveries via the Nord Stream 1 pipeline.
