UK News Partial lockdown significantly dampens consumer mood

09:45  26 november  2020
09:45  26 november  2020 Source:   handelsblatt.com

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Coronavirus: Germany imposes partial lockdown . Public mood . Until now, Merkel's government has enjoyed high levels of support for the measures put in place to tackle the pandemic and Germany has fared relatively well compared to many of its European neighbors.

Like the first corona wave in spring this year, the second wave in autumn also seriously disrupted consumer mood in Germany.

Vor dem Einkaufszentrum «Mall of Berlin» steht eine Weihnachtsmann-Skulptur. Der Teil-Lockdown dämpft die Konsumlaune empfindlich. © Christophe Gateau / dpa A Santa Claus sculpture stands in front of the “Mall of Berlin” shopping center. The partial lockdown delicately dampens consumer confidence.

The four-week partial lockdown, which is now being extended until Christmas, has noticeably dampened consumer sentiment in November, announced the Nuremberg-based consumer research company GfK on the basis of its new consumption study. "The further course of the infection process in the coming weeks will largely determine whether the consumer climate can stabilize again," said GfK consumer researcher Rolf Bürkl.

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South African consumer confidence fell to a 35-year low in the second quarter, when restrictions aimed at curbing the spread of the coronavirus pandemic kept all but essential FNB/BER second-quarter consumer confidence index fell to -33. Most households expect finances to deteriorate over next year.

While " lockdown " isn't a technical term used by public-health officials, it can refer to anything from mandatory geographic quarantines to non-mandatory recommendations to stay at home, closures of certain types of businesses, or bans on events and gatherings, Lindsay Wiley, a health law professor

"Although the retail stores remain open, the renewed closure of the hotel, catering and event industry - like tourism, which is still on the ground - has a hard time affecting the consumer climate," said Bürkl. "This finally shattered the hopes of a rapid recovery that arose in early summer," he emphasized. Especially since no relief can be expected from exports - the corona situation does not look any better in neighboring countries.

Bankruptcies are to be expected, for example in the catering, hotel or event industry. “Despite considerable financial support from the government, a number of companies from these areas will probably not survive and will have to go into bankruptcy,” said Bürkl.

As a result of increasing uncertainty among consumers, the propensity to save has increased. Conversely, this gnawed even more at the propensity to consume. According to a new survey, three out of four citizens in Germany are of the opinion that COVID-19 poses a major or very major threat to Germany. On the other hand, only half are very or very worried about their personal economic future.

The results are an excerpt from the study “GfK Consumer Climate MAXX”. To this end, GfK surveys around 2000 consumers every month on behalf of the EU Commission.

Corona: celebrate Christmas and New Year's Eve? .
Closed restaurants and bars, strict contact restrictions: Germany remains in partial lockdown. At the end of the year, however, there should be easing. Many don't think that's right, shows the ARD Germany trend. © Yui Mok / PA Wire / dpa / picture alliance Provided by Deutsche Welle The corona pandemic continues to determine the lives of citizens.

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