German Consumer Sentiment Falls to Record Low as Worst Is Yet to Come

German consumer sentiment is expected to hit a record low for the third-straight month in September as households in Europe’s largest economy are bracing for high energy bills.

According to the survey of GfK institute, its consumer sentiment index fell to -36.5 heading into September, a much lower figure compared to a revised reading of -27.7 and continuing in August with a downwardly revised -30.9 points.

The data in September is well below the level of the Great Recession in 2009 or at the start of the pandemic in 2020.

GfK institute also warned that the situation could get worse moving forward if there is not sufficient reserved energy, especially gas, to warm households during the upcoming winter.