MNI Brief: German Consumer Climate Down Amid Hard Lockdown

German consumer sentiment is forecast to decline to -7.3 in January, down from -6.8 seen in December, according to the latest Gfk survey. Consumer confidence presents an uneven picture with economic expectations and the propensity to buy seeing a marginal uptick, while income expectations eased. Germany saw a sharp increase in infection rates which led to a hard lockdown and, as a result, further uncertainty.

"At present, the savings indicator is the main factor driving the third decline in a row in the consumer climate. With the hard lockdown and the closure of most stores, the consumer climate is faced with yet another setback." said Rolf Bürkl, GfK Consumer Expert.

"There is reason to fear that the consumer climate is about to enter a very difficult phase in the coming weeks. Any relaxation or recovery can certainly only come when the infection rates have dropped so far that the strict restrictions can be loosened once more." he added.