At the close of Germany’s most sensitive shopping season, worrying signals have emerged as consumers lean toward saving rather than spending, weakening confidence and demand momentum.
According to The Wall Street Journal, the consumer climate index published by GfK and the Nuremberg Institute for Market Decisions fell to minus 26.9 in January 2026 forecasts, compared to minus 23.4 in December.
This marks the lowest reading since April 2024 and runs counter to economists’ expectations of an improvement toward minus 23.
The decline is mainly linked to a surge in “willingness to save,” which has reached its highest level since the financial crisis, reflecting households’ caution.
Rolf Bürkl, head of consumer climate at the Nuremberg Institute, said: “The return of uncertainty due to rising inflation fears and heated debates over pension reforms has certainly contributed to this record increase in saving propensity.”
Parallel indicators showed that income expectations fell for the third consecutive time, alongside a moderate drop in “willingness to buy,” signaling weak consumer sentiment as the new year approaches.
Bürkl added: “This is not good news for the final stretch of Christmas business this year.”
Sources - Agencies
