Recruit Sales in Germany Covid -19 Update Bulletin July 2020

Recruit Sales in Germany COVID -19 July Update Bulletin 

What they are saying: 

A recent survey where on behalf of the EU Commission, GfK surveyed 2,000 people in Germany between June 3 and 15 for the study. The study relates to total private consumption. Germans spend around 30 per cent of their consumer spending on retail, the rest is on rent, travel, leisure, or services.

Consumer buying and economic outlook

It appears in the survey that Consumer buying mood is slowly returning. The shops are open, and people are buying again. But not at the level before the Corona crisis. Consumer researchers are now doubting whether this will ever be achieved again. The desire to buy in Germany is picking up again after the easing of sanctions the corona crisis - albeit slowly.

The Nuremberg-based consumer research company is said to be GfK forecasting a value of minus 9.6 points for July - significantly better than in June with minus 18.6 points, but still, the third-worst value ever determined.

It is being reported that Consumers were increasingly awakened from the state of shock that had led to an unprecedented drop in sentiment in April.

"The weak light at the end of the tunnel, which was already evident last month, is apparently getting a little brighter," said GfK consumption expert Rolf Bürkl of the German Press Agency.

"But we are not yet over the mountain," stressed Bürkl. It is questionable whether the economic climate will ever return to what it was before the crisis. "It could turn out that buying behaviour changes," said Bürkl. The question: «Do I need this at all?» will be asked more often than before. There is also the risk of a corona setback.

Fresh infection waves such as in abattoirs in North Rhine-Westphalia or at controversial major tennis events in the holiday destination Croatia could lead to uncertainty.

"Germany is in a severe recession," stressed Bürkl. This could lead to bankruptcies in autumn and a further increase in unemployment. "The question will be how many of the seven million short-time workers will subsequently become unemployed," he said. The fear of losing one's job continues to put pressure on the consumer climate - even if one or the other acquisition might be preferred due to the incentives of the federal government.

The Germans, on the other hand, it seems are beginning to return to optimism about the economic outlook. The GfK indicator for economic expectations is currently 8.5 points, which is even higher than the long-term mean of zero. Pessimism about income seems to also be starting to wane.

It seems a small and cautious step in a different direction. But all is still fragile.

Compiled by SA in July 2020 from various public and widely available news sources and articles.

*Please note the information contained herein is an aggregate of news stories, by commentators widely available - readers should seek independent verification, and this in no way represents the views or opinions of Standley Associates.

We will continue to check the news reports and will provide monthly summaries of the trends.