Consumer sentiment weakens sharply in Germany

27th Apr 2026 07:49

(Sharecast News) - Consumer sentiment in Germany has fallen sharply, a closely-watched survey showed on Monday, weighed down by the ongoing war in Iran.

The latest consumer climate indicator from Nuremberg Institute for Market Decisions (NIM) and GfK came in at -33.3, down on the previous month's revised -28.1 and the lowest level for more than three years. It was also worse than expected, with most analysts looking for a print closer to -29.5.

Withing that, consumer income expectations plunged to -24.4 from -6.3, while the willingness to buy fell 3.5 points to -14.4.

Willingness to save was weaker, although it remained in positive territory, down 2.4 points at 16.1.

NIM attributed the downturn to the war in Iran, which has seen global energy prices soar, weighing on global economic growth prospects and reigniting inflation fears. Higher energy prices pushed up inflation in Germany to 2.7% from 1.9% in March.

Rolf Burkl, head of consumer climate at NIM, said: "Income expectations are literally collapsing because of rising inflation. And in this context, people also currently believe that the timing for major purchases is less favourable."

The consumer climate survey, which has been conducted since 1974 and monthly since 1980, is based on around 2,000 consumer interviews. Data for the latest indicator were collected by NIQ/GfK on behalf of NIM between 2 and 13 April.