German Consumer Confidence Hits New Low
Market research firm GfK, in partnership with the Nuremberg Institute for Market Decisions (NIM), published its Consumer Climate Outlook for 2026 on Friday.
The report revealed that the Consumer Climate Index fell from minus 23.4 points in December to minus 26.9 points in January, marking its lowest level since April 2024. Analysts had anticipated a rate of minus 23.2 points.
The decline was attributed to reduced wage expectations and a significant increase in the tendency to save. The willingness to save jumped five points to 18.7, its highest level since the 2008 global financial crisis. Meanwhile, wage expectations dropped 6.8 points compared to the previous month, reaching minus 6.9.
Experts at GfK noted that consumers’ perception of shrinking purchasing power and rising unemployment were major factors behind the downturn.
“The return of uncertainty due to rising inflation fears and controversial discussions about the future of pensions have certainly contributed to this 17-year high in the savings indicator,” explained Rolf Burkl, head of consumer climate at NIM, in the report.
“This is not good news for the final sprint in this year's Christmas business and can also be seen as a false start for Consumer Climate in 2026,” he added.
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