After a brief uptick in January, consumer sentiment in Germany continues to decline in February 2025. While economic expectations improved slightly, both income expectations and willingness to buy have fallen for the second consecutive month. The Consumer Climate for March 2025 dropped by 2.1 points, falling to -24.7 points from the revised -22.6 points the previous month. These findings come from the latest GfK Consumer Climate report, powered by NIM (Nuremberg Institute for Market Decisions), and jointly published by GfK and NIM since October 2023.
A notable rise in the willingness to save is also contributing to the negative Consumer Climate. This indicator increased by 1.2 points to 9.4 points, signaling that consumers are becoming more cautious with their spending habits.
Germany Consumer Sentiment Declines Again in February
“The current figures reveal no signs of recovery in consumer sentiment. The Consumer Climate has been stagnating at low levels since mid-2024, with high levels of uncertainty continuing to impact consumers,” says Rolf Bürkl, consumer expert at NIM. He suggests that a quick formation of the new federal government and approval of the national budget following recent parliamentary elections could restore confidence and spur economic activity.
Income expectations in February dropped by 4.3 points compared to January, reaching -5.4 points—the lowest level since January 2024, when it stood at -20 points. The ongoing decline in income outlook is primarily due to rising costs, economic uncertainty, and dissatisfaction with political decisions.
The willingness to buy dropped by 2.7 points to -11.1 points in February, reflecting growing concerns over job security amid reports of factory closures, production relocations, and job cuts in the auto industry.
In contrast, the economic outlook has seen a slight improvement, with the economic indicator rising by 2.8 points to 1.2 points in February. However, experts warn that 2025 could see another year of weak economic performance, potentially marking the third consecutive recession year for Germany—a scenario unprecedented in the country’s history.
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