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German Consumer Confidence Dips as Savings Surge and Economic Indicator Strengthens

High savings rates reflect lingering uncertainty with government stimulus fueling hopes for a 2025 rebound.

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Overview

  • The GfK and NIM consumer climate index fell by 0.3 points to –20.3 in the July forecast after three consecutive monthly gains.
  • The economic indicator rose by seven points to 20.1, marking its strongest reading since the Ukraine war began.
  • Consumers are increasing their savings due to ongoing uncertainty and a lack of planning security, which is damping spending.
  • Many households expect an economic turnaround in late 2025 based on recent multi-billion-euro stimulus for infrastructure and defense.
  • The study surveyed 2,000 consumers on behalf of the EU Commission between May 30 and June 11.