Consumer confidence in Germany has stabilized in September, halting a three-month decline, according to the latest Consumer Climate survey released by the GfK. The index for October 2025 is now projected at -22.3 points, a 1.2-point increase compared to the revised -23.5 points recorded the previous month.
The primary driver of this slight improvement is a positive shift in consumers’ expectations regarding their income. This metric has rebounded from a previous reading of 3 points to 22.3 points, effectively offsetting the previous month’s decline. Despite this encouraging development, both the willingness to purchase goods and the propensity to save have not contributed to the upward trend. The willingness to purchase specifically decreased by 1.5 points, reaching -11.6, registering as the lowest level since June 2024.
“After a period of consecutive decline, the consumer climate has paused its downward trajectory, at least temporarily” stated Rolf Bürkl, from the Nuremberg Institute for Market Decisions (NIM), which contributes to the index calculation. “The notable improvement in income expectations is the key factor behind this change.
However, experts caution against interpreting this as a definitive turning point. The overall consumer climate remains at a very low level. Ongoing geopolitical instability, concerns surrounding job security and a resurgence of inflationary anxieties are likely to impede a more substantial recovery.
Furthermore, consumer expectations regarding the German economy over the next twelve months continue to trend downward. The indicator dropped by 4.1 points, reaching -1.4 points. While marginally better than the reading of -1.6 points recorded in January 2025, the data suggests that German consumers do not anticipate a significant economic rebound in the near future.
