French, German consumer confidence skids in November amidst new lockdowns

Eurozone’s two biggest economies – Germany and France – are suffering from poor consumer confidence in November as new COVID-19 lockdowns were implemented, data from a study showed on Thursday.

Several establishments including bars, restaurants, hotels, and entertainment venues were shut again this month in both countries due to the re-imposition of restrictions to contain a new wave of coronavirus infections.

Non-essential stores in France were forced to stop business operations while retails shops remained open in Germany. However, stores in France are bound to reopen on Saturday under new protocols. The reinstated restrictions suppressed household demand heading into the holiday season, deterring a consumer-led economic recovery this year.

France’s consumer confidence dropped this month, hitting its lowest since December 2018, surpassing even the lowest levels recorded in March and April, the first months of lockdown impositions. Consumer confidence index read 90, 2 points lower than Reuters forecasts.

The GfK institute in Germany said its consumer sentiment index fell to -6.7 in November.  It also fell lower than Reuters forecasts of -5.0.

Lockdowns in Germany will be in place until Dec. 20, but while restrictions in France will start to loosen up this weekend, albeit restrictions will remain.