Germany’s consumer sentiment to fall sharply in Sept. ’25’

Germany’s consumer sentiment weakened further in August, with income and economic expectations dropping significantly, the GfK Consumer Climate powered by NIM showed on Wednesday.

The consumer climate indicator is projected to drop by 1.9 points to -23.6 in September, compared with a revised -21.7 in August. Income expectations posted the steepest decline, sliding 11.1 points to 4.1, their lowest level since March 2025.

Rolf Bürkl, head of consumer climate at NIM, said rising concerns over job security were a key factor, with unemployment nearing three million in July and expected to climb further in August. “Growing fear of job losses is causing many consumers to remain cautious about making major purchases,” he added.

Economic expectations also fell for the second month in a row to -7.4 points, while willingness to buy slipped slightly to -10.1, its weakest since February. Inflation worries, geopolitical tensions and uncertainty over US tariff policy also weighed on sentiment.

Analysts said the latest figures cast doubt on prospects for a recovery in German consumer spending before the end of the year, the report said.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama