Rising infection rates subdue consumer mood

The behaviour of European consumers has been influenced heavily by the coronavirus crisis, according to the results of the latest GfK Euro Climate study. The pandemic and associated restrictions have caused a sharp decline in consumer expenditure.
With regard to Germany, the study reports a rapid recovery. In September, the indicator showed 38.4 points, five points lower than in August. Compared with the previous year, the decline is currently just under 17 points. Out of the five biggest EU countries, Germany leads the way.
Consumers in Italy showed greater willingness to spend money in September. Here the indicator rose by nearly five points to 3.1, just three points below last year.
Although the indicator is static at present in France, the buying propensity of French citizens showed signs of recovery. The indicator increased by just 1.2 points in September, finishing at -13.2 points. Perceptibly rising levels of unemployment in the country increased fear of job losses among the French population.
Compared with the previous month, Spain recorded a marked increase in buying propensity in September at six points. Even before the onset of the pandemic, the country was battling very high unemployment rates as a legacy of the recession and had the lowest consumer sentiment of the five biggest EU states.
The lowest propensity to consume was exhibited by the United Kingdom. Following a slight upturn of 1.5 points in September, the indicator is presently at -36.3 points. The UK also had the poorest performance in the previous year at -36 points.