Germany’s consumer climate slips in early ’25

Germany’s consumer sentiment weakened at the start of 2025, with the GfK Consumer Climate index forecast to drop to -22.4 points in February from -21.4 in January, according to NielsenIQ. Economic and income expectations, along with willingness to buy, saw declines, while willingness to save increased slightly to 8.2 points.

Rolf Bürkl of NIM noted that hopes of a recovery were dashed, citing stagnant trends since mid-2024 and renewed inflation concerns. The economic outlook worsened, with the German economy shrinking by 0.2 per cent in 2024, marking a second consecutive year of recession.

Income expectations fell by 2.5 points to -1.1, reflecting concerns over rising inflation and job security. Willingness to buy also dropped, reaching -8.4 points, its lowest since August 2024, amid factory closures and production relocations.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama