MNI BRIEF: German Consumer Sentiment Drops Amid Lockdown: Gfk

German consumer sentiment fell 8.1 points for February to -15.6, down from -7.5 recorded for January, according to the latest Gfk survey, as the strict lockdown continues to weigh heavily on household sentiment with the propensity-to-buy plunging Both income and economic expectations have seen monthly decreases as well.

"The closure of the restaurant trade and large portions of the retail sector in mid-December 2020 has had a similarly damaging effect on consumer spending as that of the first lockdown last spring. At present, propensity-to-buy is at zero points. This is a decrease of 36.6 points on the previous month, which is comparable to the drop of 36 points recorded during the first lockdown in April 2020," says Rolf Bürkl, consumer expert at GfK.

Noting that consumer sentiment is facing difficult challenges in the first quarter of this year, Bürkl said for any sustainable recovery, "infection rates will need to decrease more than they have to date so that the measures can be relaxed significantly."

Last week, Gfk reported a decline in UK sentiment for their latest survey period.