German Consumer Confidence To Deteriorate Sharply On Covid-19 Impact
March 26 2020 - 12:38AM
RTTF2
German consumer confidence is set to decline sharply to the
lowest in more than a decade in April as the increase in the number
of coronavirus infection cases and the accompanying measures made
consumers to take cautious approach, survey data from market
research group GfK showed Thursday.
The forward-looking consumer confidence index fell to 2.7 from
8.3 in March. The score was forecast to fall moderately to 7.7 from
March's initially estimated value of 9.8.
At 2.7 points, the score reached its lowest level since May
2009. During the financial and economic crisis, the consumer
climate index was at 2.6 points.
"In light of the current development, we are withdrawing our
consumer forecast of one percent growth for 2020," Rolf Bürkl, GfK
consumer expert said. "Retailers, manufacturers and service
providers must prepare for a recession."
All components of the indicator, namely economic and income
expectations and propensity to buy, suffered dramatic losses in
March.
The economic expectations index fell by 20.4 points to -19.2,
which was the lowest since August 2012.
The largest euro area economy has come to a complete halt after
the wide spread of the coronavirus and the associated restrictions.
Fear of job losses also increased significantly in a very short
period of time.
Consequently, the income expectations indicator plunged 13.4
points to 27.8, its lowest level in exactly seven years.
Likewise, the propensity to buy indicator slid 22.2 points to
31.4 points in March. A lower figure was last recorded in June
2013. The survey was conducted between March 4 and 16.
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