The savings indicator climbed for the third straight month, up 2.5 points to 16.4, the highest level since February 2024. Analysts cite persistent uncertainty, elevated food prices, and consumer caution around major purchases as key drag factors. “The recovery in consumer sentiment continues to be postponed,” Rolf Bürkl, head of consumer climate at the Nuremberg Institute for Market Decisions (NIM) said in a press release. “A sustainable rebound hinges on reducing uncertainty and offering planning stability.”
Germany’s consumer sentiment worsened in July, with GfK’s Consumer Climate forecast dropping to –21.5 for Aug.
While income expectations rose for the 5th month to a 12-month high, economic expectations fell sharply and willingness to buy declined.
Savings sentiment reached a 17-month high, reflecting persistent uncertainty.
Despite stable inflation and wage growth, consumers remain hesitant to spend.
Despite stronger wage agreements and easing inflation—now at 2 per cent, in line with the ECB’s target—consumers’ willingness to buy dropped by 3 points to –9.2, reflecting a disconnect between better income prospects and actual consumption. Economic expectations saw a steep decline, tumbling 10 points to 10.1 after five months of gains. Continued fears around US tariff policy and global uncertainty are seen as major deterrents to renewed optimism.
Since October 2023, the GfK Consumer Climate has been jointly reported by NIQ/GfK and NIM, tracking key consumer behaviour metrics across the German economy.
Fibre2Fashion News Desk (KD)
