German Consumer Sentiment Set to Decline in December Amid Lockdown -GfK
By Maria Martinez
German consumer sentiment is set to fall in December, as the
partial lockdown has dampened the optimism of German consumers,
market-research group GfK said Thursday.
GfK's forward-looking consumer-sentiment index is set to fall to
minus 6.7 points in December from a revised minus 3.2 points in
November. Economists surveyed by The Wall Street Journal had
forecast minus 5.5 points for December.
A rapid increase in infection rates prompted a second lockdown
by the German government, albeit with less stringent restrictions
than faced during the lockdown earlier this year.
Although stores will remain open, the renewed shutdown of the
hotel, restaurant and events industries, as well as the already
struggling tourism industry, has had a serious impact on the
consumer climate, said Rolf Buerkl, consumer expert at GfK.
"As a result, any hope we still had in early summer of a rapid
recovery is now lost," Mr. Buerkl said.
GfK uses data from three subindexes from the current month to
derive a sentiment figure for the coming month, measuring economic
expectations, income expectations and propensity to buy. In
November, the three subindexes suffered losses.
Economic expectations among Germans was the biggest loser among
sentiment indicators in November, falling to minus 0.2 points from
7.1 points in October.
"Lockdown-lite came into effect at the start of November and
with it, consumers' hopes of a sustained recovery of the German
economy have faded," GfK said.
Consumer income expectations suffered a significant decline,
falling to 4.6 points in November from 9.8 points the previous
Propensity to buy underwent a mild decline and was at a better
level than the two other indicators, falling to 30.5 points in
November from 37.0 points in October.
"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," Mr. Buerkl said, adding that only a
significant decrease in the number of infections and an easing of
restrictions will restore a more optimistic outlook.
Write to Maria Martinez at firstname.lastname@example.org
(END) Dow Jones Newswires
November 26, 2020 02:14 ET (07:14 GMT)
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