“In the event of a new lockdown, it could even cause a contraction of GDP.”
Consumer confidence has taken a battering due to a combination of rising prices and the spread of Covid.
The GfK Consumer Climate Study found expectations of income and likelihood of making a large purchase both declined along with general sentiment in the economy.
Rolf Bürkl, GfK consumer expert, explained: “Consumer sentiment is currently being squeezed from two sides.
“On the one hand, the number of cases in the fourth wave of the coronavirus pandemic is exploding, which threatens to overwhelm the health system and could lead to further restrictions.