German Consumer Sentiment Returns to Worsening Trend

By Ed Frankl

German consumer confidence sank to its lowest level since April, as income expectations slumped on the back of continued geopolitical uncertainty and higher inflation.

The consumer-climate index published Tuesday by research groups GfK and the Nuremberg Institute for Market Decisions dropped to minus 24.1 in its forecast for November, from minus 22.5 in October.

That marked the lowest level in seven months and was weaker than the minus 22.0 from a consensus of economists polled by The Wall Street Journal. Consumer sentiment had declined for three months in a row to September, before recovering a little in October.

The downtick marked a contrast with sentiment data from businesses, including the closely watched Ifo Institute index, which registered improved confidence among firms in October.

The downtrend in consumer confidence was a result of "significantly dampened income expectations", the survey said. In contrast, consumers' economic expectations and willingness to buy rose slightly, it said.

"The ongoing tense geopolitical situation, increasing fears of inflation, and again growing concerns about jobs are destroying hopes for a short-term recovery," said Rolf Buerkl, head of consumer climate at NIM.

German inflation rose to 2.4% in the latest data for September, up from 2.2% in August, with the labor market showing signs of loosening in recent months.

Despite a small uptick, economic expectations by consumers pointed to no significant recovery in Germany in the coming months, the survey said. Data on the German economy is expected to show Thursday that gross domestic product stagnated in the third quarter of the year, after contraction in the second.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

October 28, 2025 03:14 ET (07:14 GMT)