German Consumer Sentiment Declines Further in March Forecast

Economic uncertainty, weak income expectations, and job concerns contribute to a continued drop in consumer confidence.

The GfK and NIM forecast a 2.1-point drop in Germany's consumer climate index for March 2025, reaching -24.7 points, its lowest level since June 2024.
Income expectations declined to -5.4 points, marking the lowest level in 13 months, while purchasing willingness also fell to -11.1 points.
Economic uncertainty, job security fears, and increased saving tendencies are driving the decline in consumer sentiment.
Experts suggest that a newly formed government and the approval of the federal budget could provide much-needed planning stability for consumers and businesses.
The consumer climate index, a key indicator of private consumption trends, has stagnated at historically low levels since mid-2024.