BERLIN- German consumer morale will deteriorate further at the start of next year, a survey showed on Tuesday, as the COVID-19 pandemic and the rise of the Omicron variant push Europe’s largest economy to the brink of a recession during the winter.
The Nuremberg-based GfK market research institute said its consumer sentiment index, based on a survey of about 2,000 Germans, fell to -6.8 points heading into January, against a revised -1.8 points a month earlier.
The January reading was the lowest since June and compared with a Reuters forecast for a smaller drop to -2.5. The Berlin-based DIW research institute said it expects the country’s economy to shrink in the last quarter of the year.
At the same time, prospects for the first quarter of 2022 look grim as industry continues to suffer from supply shortages and consumption could be further hit by restrictions, DIW said. – Reuters
