Germans express a desire for increased savings
In Germany, consumers continue to exhibit cautious spending habits and an uncertain outlook on saving, as reported in the latest consumer climate survey by GfK and the Nuremberg Institute for Market Decisions (NIM).
The consumer climate indicator, calculated for June 2025, is anticipated to rise moderately by 0.9 points to -19.9 points compared to the previous month. Despite this slight improvement, the consumer mood remains weak, with a decrease in the desire to make purchases and an increase in the desire to save, which negatively impacts overall consumer sentiment.
This cautious approach to spending is influenced by several factors, including unpredictable trade and tariff policies, turmoil on the stock markets, and fears of a third consecutive year of stagnation. GfK's research also suggests that US President Donald Trump's ongoing trade dispute with the EU contributes to ongoing uncertainty among companies and consumers.
Economists also express caution, with DekaBank's Andreas Scheuerle stating that the consumer climate has been stagnating at a low level for about a year, and chief economist Alexander Krüger of Hauck Aufhäuser Lampe Privatbank noting that a turnaround is possibility, but it's too early to determine definitively.
In spite of these challenges, consumers are currently evaluating their financial situation nearly as positively as they have since October 2024. Good wage agreements and a slight easing of price inflation have provided a boost to purchasing power. However, this positive outlook has not translated into increased consumer demand.
For the study, a total of 2,000 consumer interviews were conducted between May 1 and May 12, 2025, and commissioned by the EU Commission. Additional factors that may be influencing consumer sentiment, such as sustainability awareness and shopping habits, were not addressed in this particular survey.
The economy of Germany remains uncertain, as highlighted in the consumer climate survey, with a renewed focus on personal-finance due to cautious spending habits and increased savings. This cautious approach may be influenced by factors such as unpredictable trade policies, economic turmoil, and fears of stagnation, as well as US President Donald Trump's ongoing trade dispute with the EU. Notably, despite a positive evaluation of their financial situation, consumers have yet to translate this into increased employment, as both community policy and employment policy remain significant areas of interest for numerous companies.
