German consumer sentiment showed signs of stabilising ahead of July 2026, supported by a modest improvement in household income expectations.
According to a survey published by the Nuremberg Institute for Market Decisions and market research company GfK, Germany’s consumer sentiment index rose to -29.2 points for July. This compared with a revised reading of -29.7 points in June.
Consumer Confidence Remains at a Low Level
Despite the slight improvement, German consumer confidence remains historically weak.
Rolf Buerkl, head of consumer climate at NIM, said the country’s consumer climate was stabilising, but only at a low level.
Household income expectations recovered slightly during the latest survey period. However, consumers’ willingness to make major purchases remained firmly in negative territory.
At the same time, the willingness to save remained unchanged. This suggests that many households continue to take a cautious approach to spending.
No Return to Pre-War Consumer Sentiment
Buerkl noted that the latest figures do not yet indicate a return to consumer confidence levels recorded before the war in Ukraine.
The July 2026 consumer climate reading stood at -29.2 points, compared with -29.7 points in June 2026 and -20.0 points in July 2025.
The significant annual decline highlights the continued pressure on German households and private consumption.
German Consumer Climate Components
Economic expectations improved to -8.7 points in June 2026, up from -11.2 points in May. However, the figure remained far below the 20.1-point reading recorded in June 2025.
Income expectations also increased slightly, rising to -12.2 points from -13.0 points in May. One year earlier, the indicator stood at 12.8 points.
Meanwhile, willingness to buy weakened marginally to -13.4 points, compared with -13.2 points in May and -6.2 points in June 2025.
The willingness to save remained unchanged at 13.9 points.
What the Consumer Sentiment Indicators Show
The survey was conducted between June 4 and June 15, 2026.
A consumer climate reading above zero indicates year-on-year growth in private consumption. In contrast, a reading below zero suggests that consumption has declined compared with the same period one year earlier.
According to GfK, a one-point movement in the indicator represents an estimated 0.1% annual change in private consumption.
The willingness-to-buy indicator measures the balance between positive and negative responses when consumers are asked whether it is a good time to purchase major items.
The income expectations index reflects how households expect their financial situation to develop over the next 12 months.
Finally, the economic expectations index measures consumers’ outlook for Germany’s broader economic conditions during the coming year.
