German consumer morale improves slightly

Germany’s GfK Consumer Climate Indicator rose to -23.2 heading into December 2025 from -24.1 in the previous period, in line with market expectations.

Buying willingness strengthened for the second consecutive month ahead of the holiday season (-6.0 vs -9.3 in November), returning to its level from a year earlier, while the willingness to save softened (13.7 vs 15.8).

However, economic expectations slipped into slight pessimism (-1.1 vs 0.8), though they remained higher than a year ago, and income expectations turned negative (-0.1 vs 2.3), signaling persistent pressure on household finances.

Consumer sentiment is now almost identical to last year’s level, which is an encouraging sign for retailers as it suggests stable Christmas sales, according to Rolf Buerkl, head of consumer climate at NIM.

Still, he noted that while sentiment shows resilience, consumers do not anticipate a significant near-term recovery.