German Consumer Sentiment Unexpectedly Dips in July – GfK

Consumer confidence in Germany is set to deteriorate slightly in July 2025, according to the latest GfK survey. The forward-looking consumer sentiment index fell to -20.3 points from -20.0 in June (revised from an initial -19.9). Analysts had expected an improvement to -19.1 points.

Despite the overall decline in sentiment, expectations for the economic outlook improved, with the related indicator rising by 7 points to 20.1. Income expectations also climbed, gaining 2.4 points to reach 12.8, while the propensity to buy rose marginally by 0.2 points to -6.2.

"After three consecutive increases, consumer sentiment has experienced a slight setback," said Rolf Burkl, consumer expert at the Nuremberg Institute for Market Decisions (NIM). "This is mainly due to a stronger propensity to save, which is currently offsetting the positive impetus from better income expectations. A high savings tendency reflects ongoing uncertainty among consumers and a lack of planning security, which is crucial when it comes to major purchases. This is why the willingness to buy has also declined slightly this month."