German Consumer Morale Below Estimates
2025-03-28 07:28
By
Farida Husna
1 min. read
Germany’s GfK Consumer Climate Indicator stood at -24.5 heading into April 2025, little changed from a marginally revised -24.6 in the previous period, missing market expectations of -23.0.
This was the first survey conducted after the parliamentary elections, showing improvements in economic prospects (6.9 vs. 1.2 in March), income expectations (-3.1 vs. -5.4), and willingness to buy (-8.2 vs. -11.1).
However, the propensity to save rose further (13.8 vs. 9.4), reaching its highest level since April 2024.
According to Rolf Bürkl, a consumer expert at NIM, the rapid formation of a new government and the early adoption of this year’s budget have somewhat eased consumer pessimism.
Still, uncertainty remains.
"Whether these consumer hopes for a revival of the German economy are justified remains to be seen.
This will also depend on whether the recently adopted fiscal stimulus package is implemented swiftly and effectively," Bürkl noted.