German Consumer Confidence Falls to Lowest Since May on Energy Costs

By Ed Frankl

Consumer confidence in Germany dropped, dragged down by rising energy prices as tensions escalated in the Middle East.

Germany's consumer-climate index, published Friday by the Nuremberg Institute for Market Decisions and GfK, fell to minus 30.6 in its forecast for October, its lowest level since May, from minus 26.8 in September. Economists polled last week by The Wall Street Journal expected a smaller decline to minus 27.2.

"The majority of households expect high energy prices to reduce their purchasing power," said Rolf Buerkl, head of the survey at NIM. "As a result, they are more skeptical about their income expectations for the next twelve months."

Expectations for personal incomes declined to their lowest since April, shortly before a temporary tax rebate for fuel introduced by the German government. The survey also showed an increase in consumers' willingness to save.

Oil prices spiked earlier this month after renewed U.S. strikes on Iran. Higher energy prices across the eurozone in recent months were among the reasons that prompted the European Central Bank to raise its key interest rate.

The decline in confidence comes despite the Ifo Institute's business sentiment index on Thursday rising to a more-than-three-year high.

Meanwhile, consumer sentiment in the U.K. edged higher as perceptions of personal finances and the economy improved, data also published Friday showed.

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

(END) Dow Jones Newswires

September 25, 2026 02:14 ET (06:14 GMT)