German Consumer Morale Falls to Near 2 Year Low

2025-12-19 07:22 By Farida Husna 1 min. read

Germany’s GfK Consumer Climate Indicator dropped sharply to -26.9 heading into January 2026 from a marginally revised -23.4 in the prior period, missing market forecasts of -23.2 and hitting its lowest level since April 2024.

The decline reflected renewed household caution, with buying willingness slipping (-7.5 vs -6.0 in December) after two months of increases.

Also, the propensity to save jumped to its highest since June 2008 (18.7 vs 13.7), as concerns over a possible inflation resurgence and political uncertainty around pension reforms weighed on sentiment.

Income expectations fell for a third month (-6.9 vs -0.1), underscoring ongoing pressure on household finances.

By contrast, economic expectations turned positive (1.2 vs -1.1), hinting at cautious optimism about the broader outlook.

Rolf Buerkl, head of consumer climate at NIM, warned the deterioration casts a shadow over the final phase of the Christmas shopping season and risks a “false start” for consumer sentiment in 2026.



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German Consumer Morale Beats Estimates
Germany’s GfK Consumer Climate Indicator rose to -24.1 heading into February 2026, up from a near two-year low of -26.9 in the prior period, topping market forecasts of -25.8. Income expectations rebounded sharply (5.1 vs -6.9 in January), signaling easing pressure on household finances. Economic expectations also strongly picked up (6.6 vs 1.2), pointing to a much more optimistic outlook. Further, the willingness to buy improved (-4.0 vs -7.5), as inflation concerns waned. Meanwhile, the propensity to save slipped from its highest level since mid-2008 (17.9 vs 18.7). “With the current increase, the consumer climate has recovered a significant portion of the strong losses from the previous month. However, the level remains low,” said Rolf Buerkl, head of consumer climate at NIM. He cautioned that the upturn remains fragile amid geopolitical tensions and uncertain trade conditions, adding that it is unclear whether the positive trend can be sustained in the coming months.
2026-01-28
German Consumer Morale Falls to Near 2 Year Low
Germany’s GfK Consumer Climate Indicator dropped sharply to -26.9 heading into January 2026 from a marginally revised -23.4 in the prior period, missing market forecasts of -23.2 and hitting its lowest level since April 2024. The decline reflected renewed household caution, with buying willingness slipping (-7.5 vs -6.0 in December) after two months of increases. Also, the propensity to save jumped to its highest since June 2008 (18.7 vs 13.7), as concerns over a possible inflation resurgence and political uncertainty around pension reforms weighed on sentiment. Income expectations fell for a third month (-6.9 vs -0.1), underscoring ongoing pressure on household finances. By contrast, economic expectations turned positive (1.2 vs -1.1), hinting at cautious optimism about the broader outlook. Rolf Buerkl, head of consumer climate at NIM, warned the deterioration casts a shadow over the final phase of the Christmas shopping season and risks a “false start” for consumer sentiment in 2026.
2025-12-19
German Consumer Morale Improves Slightly
Germany’s GfK Consumer Climate Indicator rose to -23.2 heading into December 2025 from -24.1 in the previous period, in line with market expectations. Buying willingness strengthened for the second consecutive month ahead of the holiday season (-6.0 vs -9.3 in November), returning to its level from a year earlier, while the willingness to save softened (13.7 vs 15.8). However, economic expectations slipped into slight pessimism (-1.1 vs 0.8), though they remained higher than a year ago, and income expectations turned negative (-0.1 vs 2.3), signaling persistent pressure on household finances. Consumer sentiment is now almost identical to last year’s level, which is an encouraging sign for retailers as it suggests stable Christmas sales, according to Rolf Buerkl, head of consumer climate at NIM. Still, he noted that while sentiment shows resilience, consumers do not anticipate a significant near-term recovery.
2025-11-27