Germany Consumer Confidence

Germany’s GfK Consumer Climate Indicator rose to -19.9 heading into June 2025, up from a revised -20.8 in the previous month but less than market estimates of -19.0. This marked the third consecutive month of improvement and the highest reading since November 2024. The uptick was mainly driven by a sharp rise in economic expectations, which reached a two-year high (13.1 vs 7.2 in May), and a notable increase in income expectations (10.4 vs 4.3). However, the willingness to buy declined (-6.4 vs -4.9), while the propensity to save increased (10.0 vs 8.4), suggesting ongoing caution among consumers. “Consumer sentiment remains extremely low, and uncertainty is still high,” said Rolf Bürkl, consumer expert at NIM. He attributed the persistent gloom to unpredictable U.S. tariff and trade policies, stock market volatility, and mounting concerns over a potential third straight year of economic stagnation. "Given the general situation, people seem to think it advisable to save," Buerkl added.