19.12.202507:22:20UTC+00German Consumer Morale Falls to Near 2 Year Low

The GfK Consumer Climate Indicator in Germany plummeted to -26.9 as of January 2026, down from a slightly adjusted -23.4 in the previous period, and fell short of the market's expectations of -23.2. This marks its lowest point since April 2024. The decline reflects a renewed cautiousness among households, with a decrease in purchasing willingness (-7.5 compared to -6.0 in December) following two months of increases. Additionally, the propensity to save surged to its highest level since June 2008 (18.7 from 13.7), influenced by fears of a potential inflation resurgence and political uncertainties surrounding pension reforms. Income expectations continued to drop for the third consecutive month (-6.9 versus -0.1), highlighting sustained pressure on household finances. However, economic expectations improved to positive territory (1.2 from -1.1), suggesting cautious optimism about the broader outlook. Rolf Buerkl, head of consumer climate at NIM, cautioned that the downturn casts a shadow over the concluding phase of the Christmas shopping season, potentially leading to a "false start" for consumer sentiment as 2026 begins.