ZCZC
BCN-05
GERMANY-ECONOMY-INDICATOR-CONSUMER
German consumer confidence improves slightly after virus shock
FRANKFURT AM MAIN, May 26, 2020 (BSS/AFP) – German consumer confidence
recovered some of the ground lost due the coronavirus shock but it remains
deep in negative territory as Europe’s top economy faces a slow recovery, a
survey showed Tuesday.
Pollsters GfK said their forward-looking monthly barometer for June showed
a reading of minus 18.9 points, up from the May reading of minus 23.1 when the
indicator plunged 25 points overall.
Despite the improvement, the June level is the second-lowest ever measured
by the survey since its creation in 1980, GfK said.
“Step-by-step reopening of many businesses has definitely helped prevent
any further erosion,” GfK expert Rolf Buerkl said.
“But uncertainty remains high among consumers. They believe the German
economy is far from out of the woods and expect to be hit by a serious
recession.”
Looking to the sub-indexes that make up the consumer confidence measure,
people’s expectations for the economic outlook and for their own income both
improved — but also remained in negative territory.
Meanwhile respondents’ openness to making purchases clambered back into low
positive figures.
“People’s fear of losing their job remains high, and alongside slashed
incomes, that’s turning out to be a significant brake on consumption,” Buerkl
said.
GfK polled around 2,000 people between May 6 and 18 to compile this month’s
survey.
BSS/AFP/MMA/1333HRS