At the beginning of the year, German consumers are showing a modest uptick in sentiment. According to the GfK Consumer Climate Index that was released on Wednesday morning, both confidence in the economy and in personal income have risen, while the tendency to save has largely stayed flat.
The February index is now at -24.1 points, an increase of 2.8 points compared with the previous month. The rise is driven mainly by a sharp jump in expected income levels, with the purchase‑inclination component adding 3.5 points to reach -4.0. The best figure for that component was -2.1 in March 2022. While consumers are feeling better about their earnings, the issue of inflation still weighs heavily on spending decisions; the majority still cite high or rising prices as the main hurdle. That concern has eased somewhat, however, as Germany’s inflation rate fell to 1.8 % in December 2025.
Economic expectations for the next 12 months have also improved. The outlook indicator now shows 6.6 points, up 5.4 points from the previous reading and 8.2 points higher than the same period a year ago.
“It’s a relief that the recent increase helps to offset the sharp losses seen in the previous month, although the overall level remains low” said Rolf Bürkl of the NIM (Nürnberg Institute for Market Decisions). He cautioned that the positive trend could still be fragile: “Ongoing geopolitical tensions and a potential escalation of trade conflicts could quickly reverse the mood, so the current brightening rests on shaky ground”.
With the second consecutive rise, analysts believe the data support the view that Germany’s economy is returning to a moderate growth path after three years of recession or stagnation. Most economic experts now expect this year’s GDP growth to be around 1 %.
