The GfK Consumer Climate Indicator for Germany rose to -21.3 points in January 2025, up from a slightly revised -23.1 points in the previous period, marking the lowest level since May.
Germany's consumer climate improves, still low
This result surpassed market expectations of -22.5 points, driven by a rebound in income expectations (1.4 vs. -3.5 in December) and a modest improvement in willingness to buy (-5.4 vs. -6.0). At the same time, economic prospects stabilized at a low level (0.3 vs. -3.6), reflecting the weak growth outlook for 2025. The propensity to save also dropped sharply to 5.9 from 11.9. "At -21.3 points, the consumer climate remains very low," said Rolf Bürkl, a consumer expert at NIM.
He noted that a sustained recovery in consumer sentiment is unlikely due to high economic uncertainty, rising food and energy prices, and ongoing concerns about job security.
