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German Consumer Sentiment Dips as Savings Propensity Hits Year-High

High prices coupled with uncertainty have driven a surge in savings, leading to a drop in big-ticket spending.

Passantinnen mit Einkaufstaschen in einer Fußgängerzone.
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Die Aussicht auf eine neue Bundesregierung hat sich offenbar positiv auf die Verbraucherstimmung ausgewirkt: Das von GfK und NIM ermittelte Konsumklima stieg. Bei Unternehmen herrscht weiter Unsicherheit hinsichtlich ihrer geschäftlichen Entwicklung.
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Overview

  • The GfK/NIM consumer climate index fell by 1.2 points to –21.5 in July, underscoring persistent weakness in mood.
  • Savings propensity climbed 2.5 points to 16.4, marking its highest reading since February 2024 as households bolster financial buffers.
  • Consumers’ willingness to make larger purchases sank to the lowest level since February, reflecting growing caution over spending.
  • The economic recovery expectation index halved month-on-month, leaving most Germans unconvinced of a rebound this year.
  • Income expectations rose for the fifth consecutive month to 15.2 points, a one-year peak supported by solid wage deals, pension hikes and moderate inflation.