Virus shutdowns sap German consumer confidence

FRANKFURT AM MAIN: Extended coronavirus shutdowns and rising job fears are weighing on gloomy German consumers as they head into February, a key survey said Wednesday.

The GfK institute's forward-looking survey plunged to minus 15.6 points for February, following a January level of minus 7.5 points.

It was the fourth decline in as many months as Europe's top economy struggles to get a second wave of Covid-19 cases under control despite tough curbs.

"The closures of restaurants and large parts of retail trade in mid-December 2020 have hit consumers' inclination to spend just as hard as during the first lockdown last spring," GfK consumer expert Rolf Buerkl said in a statement.

The German government introduced renewed restrictions in November, shutting restaurants, hotels, culture and leisure centres. In December, it also closed schools and non-essential shops, and prolonged the measures until February 14.

The GfK survey of some 2,000 people found that shoppers were more downbeat about Germany's economic prospects as well as their own income expectations.

The most dramatic change however was in their propensity to spend money, with the sub-index plunging to zero, from 36.6 points in the previous month.