Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
A BMW assembly plant in Leipzig, eastern Germany/AFP

Kenya

German consumer confidence survey dips on lockdown fears

FRANKFURT, Germany Oct 22 – The mood among German consumers has darkened as fears rise of further restrictions to curb the spread of the coronavirus pandemic, a closely watched survey said Thursday.

The GfK institute’s forward-looking assessment of consumer confidence heading into November fell to -3.1 points from a revised figure of -1.7 in October, well below expectations of -2.0 according to analysts surveyed by FactSet.

Rising infection numbers and the toughening of restrictions are leading to a “fear of further lockdown increases if the rate gets out of control in the coming winter months,” GfK’s Rolf Buerkl said.

The recovery of the mood since lockdowns in the spring, which was “strong” according to Buerkl, “has therefore come to a standstill”.

The German economy had enjoyed a rebound after being weighed down in the spring, when businesses and factories were shuttered.

The survey hit a historic low of -23.1 in May, before reaching -0.2 in August, a high point since pandemic-related restrictions were introduced in the country.

But the GfK survey, based on around 2000 interviews, found that German shoppers now thought their income prospects were bleaker, with expectations of the economy sinking after five months of rising sentiment.

The survey also said that more than half — 51 percent — of respondents had “major concerns” over the economic impact of the virus on them personally.

Last week, Germany reported its highest number of new virus cases as numbers spiked across Europe.

Advertisement. Scroll to continue reading.

The Alpine district of Berchtesgaden in southern Germany, a beauty spot popular with tourists, on Tuesday became the first area to return to strict lockdown since the height of the pandemic earlier this year.

The course of the pandemic will decide whether consumer climate can stabilise in the coming months, the survey said.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...