The latest GfK Consumer Climate survey, published jointly by GfK and the Nuremberg Institute for Market Decisions (NIM), reveals that consumer sentiment in Germany shows a slight recovery following the recent parliamentary elections. Despite improved economic and income expectations, as well as an increase in the willingness to buy, a rising willingness to save has kept the Consumer Climate indicator almost unchanged.
The survey indicates a minimal increase of 0.1 points in the Consumer Climate for April 2025, reaching -24.5 points compared to -24.6 points in March. This stabilisation reflects both cautious optimism and ongoing uncertainty among consumers.
Rolf Bürkl, consumer expert at NIM, commented on the findings: 'Apparently, the elections and the prospect of a new government have lessened pessimism among a number of consumers. However, the renewed rise in the willingness to save is clouding the overall picture. It prevents a stronger improvement in the Consumer Climate.' Bürkl noted that the increased willingness to save, now at 13.8 points (up 4.4 points), reflects considerable uncertainty. He stressed the importance of forming a government swiftly and adopting a budget to provide planning security, encouraging consumers to spend and stimulate the economy.
Income and buying expectations improve
Income expectations have increased for the first time in two months, rising by 2.3 points to -3.1 points. Although this marks an improvement, it remains below the previous year's figure. Bürkl remarked: 'It remains to be seen whether this will stop the downward trend that has continued since mid-2024 and enable a recovery in income expectations. Our in-depth analyses show that, in addition to high prices and insufficient incomes, the persistently uncertain political and economic situation are reasons for the weak development of income expectations.'
Similarly, the willingness to buy has seen a moderate increase of 2.9 points to -8.2 points, approximately 7 points higher than the same period last year. However, it remains significantly lower than pre-pandemic levels. Bürkl pointed out that reducing uncertainty is essential to fostering sustained consumer willingness to make large purchases.
Economic outlook shows cautious optimism
The survey also indicates a rise in economic expectations, with the indicator climbing by 5.7 points to 6.9 points, marking the highest level since April 2024. The improved sentiment reflects increased hope for economic revival following the elections. However, experts warn that the feasibility of this optimism largely depends on the prompt and targeted implementation of recently agreed financial measures.
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