German Consumer Sentiment Declines at Start of 2025

Rising inflation and job security concerns dampen spending confidence, reversing modest gains from late 2024.

The GfK and NIM consumer climate index for February 2025 is projected to drop to -22.4 points, reflecting a decline in spending confidence.
Key indicators such as income expectations and willingness to make major purchases have fallen to their lowest levels since August 2024.
Inflation, which rose to 2.6% in December 2024, continues to pressure household budgets and weaken purchasing power.
Concerns over job security, fueled by reports of factory closures and production shifts, are further dampening consumer optimism.
The survey, based on interviews with 2,000 participants, highlights increased savings tendencies as households grow more cautious about financial uncertainty.