Depression in China
As a result of the coronavirus epidemic, production in China fell to a historic low in February. The so-called purchasing manager index (PMI), a central index for production in Chinese plants, fell to 37.5 points. In January it was still 50 points. The value has never been so low since the index was launched in 2005. According to the Chinese statistics authority, the auto industry and mechanical engineering are particularly badly affected. Non-manufacturing sectors such as transport, gastronomy, and tourism suffer even more.
Hamster purchases and “herd behavior”
Durable food, beverages, toilet paper, cleaning cloths, and disinfectants: The spread of the coronavirus in Germany drives consumers to buy hamsters. The trade reports an increase in demand but sees no danger to the supply of the population. The economist Marcel Fratzscher sees such a “herd behavior” as a danger: “There is also something like this with companies and consumers. This is very irrational in some cases, ”said the head of the Berlin research institute DIW to the Passauer Neue Presse. Fratzscher warned of a “devil spiral” in which companies and consumers react to the many uncertainties with changes in behavior and demand. “A downward whirlpool is possible. The greatest danger would be panic.”
Corona beer: no slump
The US owner of Corona beer has rejected reports that customers shy away from buying the brand. The business is not affected by reports of the virus of the same name, said Constellation Brands chief Bill Newlands. The brand had problems with an advertising campaign for mineral water mixed with alcohol and fruit aroma. The spot says that the “Hard Seltzer” will soon “come ashore”. That caused ridicule. “I’m pretty sure Corona has always had a remarkably bad taste,” said a Twitterer.
ITB travel warning
After the cancellation of the ITB travel fair, the consequences are still unclear. Some customers still want to come to Berlin to make business contacts or conclude contracts. The Federal Ministry of Economics promised to review compensation.