The buying mood is rising again
The Germans estimate their future financial situation somewhat better again. The consumer climate is rising, but remains clearly in negative territory.
Mith the first easing of the Corona crisis, consumer mood in Germany is also brightening up a bit. For June, GfK market researchers are predicting an increase in their barometer by 4.2 to minus 18.9 points. Most recently, the consumer climate had fallen to a record low.
“In May consumers in Germany recovered a little from the shock that was triggered by the Covid-19 pandemic,” said GfK expert Rolf Bürkl on Tuesday. The gradual opening of many shops certainly contributed to the fact that the propensity to consume did not suffer any further losses and could even increase something. “Nevertheless, there is great uncertainty among consumers.”
“The fear of losing a job remains high”
The virus crisis hits the economy with full force. Falling consumer spending and shrinking investments caused the German economy to collapse at the beginning of the year. The gross domestic product (GDP) fell from January to March by 2.2 percent compared to the previous quarter and thus more sharply than since the financial and economic crisis of 2008/2009.
“Consumers are still far from seeing the German economy over the hill and facing a severe recession,” said Bürkl. “The fear of losing a job remains high and, in addition to the loss of income, this is currently proving to be an important obstacle to consumption.” Dealers and manufacturers must continue to adjust to this.
Financial situation is better assessed
After two declines in a row, consumer economic expectations rose again in May, but remained well below the long-term average. The economy will now start up again faster than expected a few weeks ago, said Bürkl. “This also increases the hopes of consumers that a debacle on the job market will be prevented.”
Consumers assessed their future financial situation – after the drastic decline in the previous month – now a tad better again. Nevertheless, short-time work and unemployment led to significant income losses in many households. “For a number of self-employed people, for example in the cultural sector, there is no end to the lockdown in sight.” Their income is therefore still at zero. The willingness to start larger purchases has meanwhile increased slightly.