New lockdown crushes French, German consumer confidence in November – Business news

New lockdown crushes French, German consumer confidence in November – Business news

According to data published in November, French and German consumer confidence sank in November as new coronovirus restrictions crushed any possibility of a quick return to the euro zone’s two largest economies in general.

Restaurants, bars, hotels and entertainment venues in both countries have had to close this month under new restrictions to contain a new wave of Kovid-19 infections.

While retail shops are open in Germany, non-essential shops had to be closed in France. They will be able to reopen under strict sanitary protocol on Saturday.

The latest restrictions have left domestic demand soaring in the holiday season, which could push consumer-led economic recovery prospects next year.

In France, which was put back under a tight lockdown on October 30 in Europe, consumer confidence fell to its lowest level since December 2018 this month, reaching levels in March and April, before and even That washer was during lockdown.

France’s official statistics agency, INSEE, said its Consumer Confidence Index fell four points to 90, worse than the average expectation in a Reuters poll of economists for 92.

Confidence was lowest since the outbreak of violent street protests against the government during the “yellow vest” movement, which forced many shops to climb into central Paris.

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Families felt more uncertain about their financial prospects, as concerns about future unemployment reached their highest levels since mid-2013.

Intentions to purchase in large numbers fell while saying it was a good time to keep the number of people from climbing and sits well below its long-term average, the data showed.

A survey showed consumer morale in Germany fell further in December, as partial lockout led to families’ income expectations and willingness to buy.

The GfK Institute said that based on a survey of about 2,000 Germans, the Consumer Consumer Index fell to -3.7 in November from a revised -3.2 in the previous month. Missed a Reuters forecast for a narrow decline to readings-5.0.

GfK consumer expert Rolf Buerkl said that although retail shops remained open until now, the restaurant, bars, hotels and entertainment venues closed since 2 November. Buerkel said the growing cases of Kovid-19 are increasing uncertainty, so the Germans have caught their money.

“Expectations of rapid recovery that originated in the early summer certainly went awry,” Buerkl said.

German Chancellor Angela Merkel agreed with the leaders of 16 federal states of Germany to extend and tighten the coronavirus lockdown until late December 20 on Wednesday, but to rule families and friends together over the Christmas holidays Reduce it.

On Tuesday, President Emanuel Macron said that France would begin gradually reducing its lockdown later this week, although many restrictions remain.

But some epidemiologists say that France cannot return to a normal way of life until next autumn, provided vaccine programs work.

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