Germans express intention to increase personal savings
German Consumers Remain Hesitant to Increase Spending and Save More
German consumers continue to exhibit caution in their spending habits, with the consumer climate in the country remaining weak. This trend, according to a joint study by market research firm GfK and the Nuremberg Institute for Market Decisions (NIM), has persisted for the third month in a row, albeit with a slight improvement.
The consumer climate indicator for June 2025 is projected to increase moderately by 0.9 points, reaching -19.9 points compared to the previous month. This represents the highest level since November 2024 but remains significantly below average.
Consumers are demonstrating a preference for saving over spending, a behavior that is negatively impacting the consumer mood. Rolf Bürkl, a consumer researcher at NIM, attributes this trend to economic fears, market volatility, and the possibility of a third consecutive year of stagnation.
Economists have voiced concerns about the stability of consumer sentiment. Andreas Scheuerle of Deka Bank states that while the consumer climate has shown some improvement, it has been stagnant at a level similar to the Corona lockdown for about a year. Alexander Krüger, chief economist at Hauck Aufhäuser Lampe Privatbank, adds that the consumer mindset is not yet prepared for significant consumption surges.
Chief economist Cyrus de la Rubia of Hamburg Commercial Bank also cites a lack of trust in the new coalition's ability to deliver results as a factor contributing to the cautious consumer stance. Despite improved income prospects and a relatively positive assessment of their own financial situation, consumers remain reluctant to make large purchases.
The study, which involved interviews with 2,000 consumers from May 1 to May 12, 2025, was commissioned by the European Commission.
Several challenges, such as economic stagnation fears, unpredictable trade policies, and global market volatility, contribute to this cautious consumer behavior, which in turn restrains economic growth. While consumer confidence has shown slight improvements, these challenges persist, leading to a fragile and gradually recovering consumer climate in Germany that prioritizes savings over spending.
The German Consumer Climate Study reveals that the new coalition's policy decisions, including community policy and employment policy, may have a significant impact on consumer behavior, as lack of trust in their ability to deliver results contributes to the cautious consumer stance. This hesitation in spending, along with economic fears and market volatility, could affect business and finance sectors, potentially influencing long-term employment policies and overall economic growth.
