German consumer confidence deteriorates further on weaker income outlook

24th Jul 2026 12:29

(Sharecast News) - Consumer confidence across Germany worsened this month, according to a closely watched survey from GfK and the Nuremberg Institute for Market Decisions (NIM) on Friday,

The latest NIM Consumer Climate index edged down to -29.6 from a revised -29.3 in July as weaker income expectations and a renewed preference for saving outweighed modest improvements in spending and economic outlook.

The index has not been in positive territory since November 2021.

NIM said the 0.3-point decline reflected growing caution among households despite signs that confidence in the wider economy is stabilising.

Income expectations fell 2.3 points to -14.5, reversing some of the improvement seen in recent months, while the willingness-to-save indicator climbed 3.1 points to 17.0, a level NIM said was exceptionally high by historical standards.

By contrast, willingness to buy improved 3.5 points to -9.9, though it remained firmly in negative territory, suggesting consumers are still reluctant to make major purchases.

Economic expectations also improved for a third consecutive month, rising 2.4 points to -6.3. However, most respondents continued to expect Germany's economy to deteriorate over the next year.

"Although the willingness to buy has risen moderately, it remains very subdued. Income prospects have seen another slight decrease, whilst the willingness to save has picked up moderately once again," said Rolf Bürkl, head of consumer climate at NIM.

"The ongoing uncertainty means that many households remain cautious about spending."

NIM added that higher fuel prices following the expiry of Germany's fuel subsidy at the end of June had contributed to renewed inflation concerns, reinforcing households' cautious approach to spending.