German consumer confidence falls despite improving economic outlook

28th Oct 2026 07:47

(Sharecast News) - German consumer confidence is set to weaken slightly in November, according to a survey released on Wednesday, as concerns over inflation and household finances continued to weigh on spending intentions despite improving economic expectations.

The Nuremberg Institute for Market Decisions (NIM) said its GfK consumer climate index slipped to -30.8 points for November from -30.6 in October, though slightly ahead of the -30.9 consensus forecast.

The index remained well below its year-earlier level of -22.5, highlighting the continued weakness in household sentiment.

Economic expectations improved for the sixth consecutive month, rising 5.5 points to 2.1, moving into positive territory for the first time since the outbreak of the Iran war.

However, the improvement failed to translate into stronger spending intentions, with the willingness-to-buy indicator falling 1.1 points to -11.9.

Income expectations also weakened, declining 0.7 points to -15.7, following a sharp deterioration in September. Meanwhile, the propensity to save fell 4.3 points to 17.2, although it remained elevated.

NIM said rising inflation concerns were continuing to constrain household spending, with German inflation reaching 3.3% in September, its highest level since December 2023, driven by higher fuel prices.

Rolf Bürkl, head of consumer climate at NIM, said consumers were becoming increasingly optimistic about the broader economy but remained cautious about their own financial circumstances.

"Growing inflation concerns and subdued income prospects are dampening the willingness to buy, even as the willingness to save is declining moderately. Even the gas rebate does not seem to be providing the relief that was hoped for. The hope for an economic upswing is there, but the willingness to buy has not yet followed suit," he said.