27.08.202506:28:24UTC+00German Consumer Morale Below Forecasts

The GfK Consumer Climate Indicator for Germany dipped to -23.6 as September 2025 approached, down from a slightly adjusted -21.7 in August, failing to meet market predictions of -22.0. This marks the lowest point for the index since April. The decrease was largely attributed to a notable decline in income expectations, which plummeted to 4.1 from 15.2, reaching their weakest point since March. This drop reflects mounting concerns about job security, rising inflation expectations, and the repercussions of U.S. tariff policies. Economic expectations also declined, dropping to 2.7 from 10.1, marking the second consecutive month of reduction and hitting a six-month low, as optimism for an economic rebound this year dwindles. Concurrently, the willingness to make purchases diminished for the third straight month, falling to -10.1 from -9.2, the lowest recorded since February. The propensity to save showed a slight decrease to 15.8 from 16.4, providing minimal relief. According to Rolf Bürkl, Head of Consumer Climate at NIM, "With this third consecutive decline, consumer sentiment is now unmistakably in a summer slump." He further noted that ongoing uncertainty regarding inflation, energy costs, and geopolitical risks continues to burden households.