Second COVID-19 wave further weakens Germany's consumer climate: GfK study

Source: Xinhua| 2020-11-26 20:20:20|Editor: huaxia

BERLIN, Nov. 26 (Xinhua) -- The second COVID-19 wave "dealt a blow" to consumer climate in Germany and the forward-looking consumer-sentiment index fell from minus 3.2 points in November to minus 6.7 points in December, according to a monthly study published on Thursday by market research institute GfK.

Consumer sentiment in Germany was "significantly dampened" by the partial lockdown that includes strict social restrictions and the closure of all bars and restaurants, according to the study which interviewed 2,000 consumers conducted on behalf of the European Commission.

The lockdown which came into effect at the beginning of November was just extended until Dec. 20. Gfk noted that "consumers' hopes of a sustained recovery of the German economy have faded."

As the economic outlook deteriorated, income expectations in Germany also suffered a further setback, according to GfK. The second lockdown in Germany was a "major blow" for companies in gastronomy, the hotel and event industry as well as tourism.

Despite financial support from the German government, a number of companies from these sectors were "unlikely to survive and will be forced to file for bankruptcy," GfK noted. "This is fueling job loss fears for many employees" in Germany.

"How the infection rate develops in the coming weeks will play a decisive role in determining whether the consumer climate will be able to stabilize again," said Rolf Buerkl, consumer expert at GfK, in a statement.

"Only a significant decrease in the number of infections and an easing of restrictions will restore a more optimistic outlook," said Buerkl. Enditem