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  • The mood among German consumers is brightening further as the country emerges from months of coronavirus lockdown, pollsters GfK said Thursday, but still has ground to make up on the pre-pandemic world. "Rapid reopening of the economy and society in Germany is helping consumers get over the corona shock more and more," GfK said, as its monthly forward-looking barometer predicted -9.6 points for July, up nine points on this month. The measure had fallen as low as -23.1 points, an all-time low, in May. Not only reopening, but "extensive aid from government stimulus programmes including reduced VAT" in the second half of the year is helping lift spirits, according to GfK expert Rolf Buerkl. Consumers' expectations for economic growth bounded back into positive territory, while people's expectations for their own income regained some ground and they were more open to splashing out cash. "If merchants and manufacturers pass on (the VAT cut), we can expect planned purchases to be brought forward and boost consumption this year," Buerkl said. In another sign of consumption picking up again, a measure of people's inclination to save fell compared with June. But GfK also warned that rising unemployment figures and the deep recession prompting fears of layoffs would likely keep the good vibes in check. GfK's data was based on a survey of around 2,000 people between June 3 and 15. tgb/hmn/rl
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  • German consumers' morale picks up further
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