People in Germany express a desire to increase their savings.
Improved but Still Reserved: German Consumer Climate for June 2025
Germany's consumer climate has displayed a marginal improvement for the third month running, with the GfK Consumer Climate Index rising to -19.9 points from -20.8 in May. This improvement marks the highest level since November 2024[1][2][5]. However, consumer sentiments remain extremely low, as economic uncertainties persist.
According to the latest study by market research company GfK and the Nuremberg Institute for Market Decisions (NIM), the consumer climate indicator for June 2025 is anticipated to rise moderately by 0.9 points[2]. This increase in desire to save and decrease in desire to make purchases has slowed the consumer mood's ascent.
"The unpredictable trade and tariff policies of the U.S. government, turbulence on the stock exchanges, and fears of a third consecutive year of stagnation are causing the consumer climate to remain weak," said Rolf Bürkl, Consumer Researcher at NIM[2]. The increasing preference for savings over spending has created an overall dampening effect on consumer behavior.
GfK also highlighted the back-and-forth of U.S. President Donald Trump in the trade dispute with the EU as a factor that continues to cause uncertainty among companies and consumers[2].
Economists express caution towards the improving consumer climate. "The consumer climate has improved, but ultimately it has been stagnating at the level of the corona lockdown for about a year," said Andreas Scheuerle of DekaBank[4]. "The mood is not yet ready for major consumption leaps," explained Alexander Krüger, Chief Economist of Hauck Aufhäuser Lampe Privatbank. The course of events will depend largely on how employment concerns evolve.
Despite this, people in Germany rate their personal financial situation as good as they have since October 2024[2]. "Good wage agreements, such as recently in the public sector, combined with a slightly decreasing inflation rate, are providing a purchasing power boost," says GfK[2]. However, the willingness to make larger purchases has deteriorated.
"Consumer inclination is not gaining momentum despite improved income prospects," emphasized GfK[2]. The study involved a total of 2,000 consumer interviews, conducted from May 1 to May 12, 2025[5]. It was commissioned by the EU Commission.
[1] ntv.de[2] kfe/dpa/rts[3] Financial Post[4] Reuters[5] Handelsblatt Online
The community and employment policies, influenced by financial concerns, could potentially impact business decisions, given the ongoing economic uncertainties and the slow ascent of consumer sentiment. The improvement in the consumer climate is largely contingent on the evolution of employment policies, as highlighted by economists such as Andreas Scheuerle and Alexander Krüger. Consumer inclination may not gain momentum despite improved income prospects, underscoring the importance of continuous monitoring and adjustments in these policies.
