German consumer confidence sinks to two-year low
By Benjamin Chiou
Date: Friday 19 Dec 2025
(Sharecast News) - Consumer confidence in Germany has slumped to a two-year low as economic expectations stagnated and savings ambitions hit their highest in 17 years, according to the closely followed GfK Consumer Climate Indicator on Friday.
The forward-looking confidence index, published jointly by NIQ/GfK and the Nuremberg Institute for Market Decisions (NIM), dropped 3.5 points to -26.9 for January.
This was well below the consensus forecast of -23.2 to mark the lowest level since April 2024.
The income expectations sub-index dropped to -6.9 in December, down from -0.1 the month before, resulting in a decline in the willingness to buy indicator to -7.5 from -6.0, as purchasing power receded amid renewed fears about inflation.
At the same time, the willingness to save measure jumped to from 13.7 to 18.7, its highest in 17 years.
"What is remarkable this month is that the willingness to save has climbed to its highest level since the financial and economic crisis: the last time a higher value was measured was in June 2008, at 21.4 points," said Rolf Bürkl, head of consumer climiate at NIM.
"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."
Bürkl said this indicated a "false start for consumer climate" heading into 2026.
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