Consumers have lost confidence in the Corona pandemic. Their income expectations, like their propensity to buy, collapsed dramatically in April. The decline during the financial market crisis was not even nearly as abrupt. Although the economic expectations of the respondents were currently rated only slightly worse than in March, the decline in the financial market crisis was not even as abrupt. On the other hand, this indicator had already fallen significantly in the previous month.
In view of these findings, GfK is forecasting a consumer climate of -23.4 points for May, a new all-time low. Accordingly, private households are expecting a deep recession. However, during the survey period for the GfK consumer climate from April 1 to April 14, the relaxation measures that have now been implemented could not yet be assumed.
In April, income expectations plummeted by 47.1 points compared to the previous month. Never before has the decline been so severe. The fear of income losses and job losses has become topical again. Many consumers are already affected by short-time work. The closure of shops, restaurants and hotels is also causing existential fears among those affected.
It is therefore not surprising that the propensity to buy (-4.6 points) also lost 36 points compared to March. A year ago the corresponding value was even 58 points higher. Private consumption, on which the German economy has always been able to rely in recent years, will be clearly negative this year.