German consumer sentiment is expected to improve slightly in December, supported by a modest rise in households’ willingness to spend ahead of the holiday season. However, weaker income expectations continue to limit a stronger rebound, according to a survey released on Thursday.
The consumer sentiment index, compiled by the GfK market research institute and the Nuremberg Institute for Market Decisions (NIM), increased to -23.2 for December, up from -24.1 in November. The result matched analysts’ forecasts.
A key boost came from a 3.3-point rise in consumers’ willingness to buy, marking the second month of improvement. The indicator reached -6.0 points, returning to the level seen one year earlier. A 2.1-point decline in the willingness to save also helped support overall sentiment.
“Consumer sentiment is now almost identical to where it was last year. This is encouraging news for retailers heading into the year-end period, as it suggests stable Christmas sales,” said Rolf Buerkl, head of consumer climate at NIM.
Buerkl added that the data shows stability but also highlights that consumers do not expect a quick or significant recovery anytime soon.
Economic expectations for the next 12 months slipped nearly 2 points to -1.1 but remained 2.5 points higher than at the same time last year.
Germany’s economy is forecast to grow only 0.2% in 2025 after two years of contraction, as the impact of Chancellor Friedrich Merz’s spending programs will take time to filter through to the broader economy.
Survey data also provided insight into other sentiment components:
- Economic expectations fell to -1.1 points
- Income expectations dipped slightly to -0.1 points
- Willingness to buy held at -6.0 points
- Willingness to save dropped to 13.7 points
The survey was conducted between October 30 and November 10, 2025.
An indicator above zero signals year-on-year growth in private consumption, while a reading below zero reflects a decline. GfK notes that a one-point move corresponds to a 0.1% shift in annual private consumption.
The “willingness to buy” index measures whether consumers feel it is a good time to purchase major goods. The income expectations index tracks how households see their finances evolving over the next year. The economic expectations index gauges views on the broader economic outlook over the next 12 months.
($1 = 0.8618 euros)
