June 26, 2025
German consumers hold back spending despite signs of recovery
German consumers are holding back on spending, a study has shown, slowing the recovery in private consumption.
Consumer sentiment stagnated in June, halting its recent recovery, according to the data from research groups GfK and the Nuremberg Institute for Market Decisions (NIM). The consumer climate index has slipped by 0.3 points to -20.3.
Although expectations for both the economy and income have improved, GfK and NIM state that “a rising propensity to save is preventing the consumer climate from continuing its recovery.”
“After three consecutive increases, the consumer climate has now taken a slight hit,” said Rolf Bürkl, consumer expert at NIM. He added that the increase in saving reflects “ongoing uncertainty and a lack of planning security” among consumers.
Income expectations rose by 2.4 points to 12.8. Compared with June 2024, that marks a 4.6-point gain. Researchers cited strong recent wage agreements, particularly in the public sector, and a now moderate inflation rate as key drivers.
However, these positive expectations have not translated into a greater willingness to buy. “Uncertainty caused by the still unpredictable policies of the US administration, particularly on tariffs and trade, is prompting German consumers to remain cautious,” the researchers said.
Instead, the saving inclination rose sharply from 10.0 to 13.9 points.
