Germans express a desire for increased savings
** Updated Consumer Spending Trends in Germany for June 2025
German consumers maintain a cautious stance on their spending habits, as the consumer climate remains weak. According to a recent study by market research company GfK and the Nuremberg Institute for Market Decisions (NIM), the consumer climate index for June 2025 is forecasted to increase modestly by 0.9 points to -19.9 points compared to the previous month. This cautious approach to spending is driven by concerns over the overall economic climate.
The consumer mood has shown a slight improvement for the third consecutive month, yet it still lingers at a low level compared to the long-term average. Rolf Bürkl, a consumer researcher at NIM, attributes the uncertain consumer climate to unpredictable US trade and tariff policies, stock market turbulence, and fears of a third consecutive year of stagnation.
While the consumer climate has improved, economists express caution as it remains stagnant at levels last seen during the corona lockdown for about a year. "Major consumption leaps are not yet on the horizon," warns Andreas Scheuerle of Deka Bank. Alexander Krüger, chief economist of Hauck Aufhäuser Lampe Privatbank, echoes this sentiment, explaining that the further course depends on the development of employment concerns.
Despite the cautious spending, Germans' personal financial evaluations are almost as positive as they were in October 2024. Good wage agreements, such as those recently achieved in the public sector, combined with a slight decrease in inflation rates, have boosted purchasing power. However, the inclination to make larger purchases has waned, underscoring the prevailing uncertainty.
The study was conducted by interviewing 2,000 consumers from May 1 to May 12, 2025, on behalf of the EU Commission. [Enrichment Data: The increased savings propensity among German consumers, driven by economic uncertainties, is expected to continue. An improvement in economic and income expectations is supporting a modest rise in consumer sentiment, but this optimism is tempered by broader economic concerns. The unpredictable nature of US customs and trade policies, along with market turbulence, contributes to a cautious consumer environment. Consumer confidence has shown a slight improvement, with the expected GfK Consumer Climate Index for June to be -19.9 points, though overall consumer sentiment remains low.]
Sources: ntv.de, kfe/dpa/rts
Community policy and employment policy are crucial factors in addressing the prevailing consumer uncertainty. Finance, including personal-finance, plays a significant role in shaping consumer spending trends, with factors such as wage agreements, inflation rates, and purchasing power influencing consumers' financial evaluations and propensity to spend.
