Germany’s consumer sentiment rises in June ’25

Germany’s consumer sentiment is set to improve moderately in June, with the GfK Consumer Climate Index forecasting a rise of 0.9 points to -19.9, marking its highest level since November 2024.

However, overall sentiment remains subdued as consumers remain cautious about spending, according to figures released Monday by NIQ and the Nuremberg Institute for Market Decisions (NIM).

While economic and income expectations rose in May — with the income index climbing 6.1 points to 10.4 — the willingness to buy slipped 1.5 points to -6.4.

The report cites rising consumer uncertainty, influenced by US trade policy, stock market volatility, and concerns over stagnant economic growth, as key reasons for the restrained outlook.

The economic expectations indicator rose for the fourth consecutive month, reaching 13.1 points — the highest level since April 2023 — while the savings indicator increased by 1.6 points to 10.0, reflecting a growing preference for financial caution.

Despite better wage agreements and easing inflation — down to 2.1 per cent in April — the mixed consumer response signals ongoing unease over Germany’s short-term economic prospects.

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