FX.co ★ German Consumer Morale Improves Slightly

As we approach December 2025, Germany's GfK Consumer Climate Indicator has improved slightly, edging up to -23.2 from the previous -24.1. This shift aligns with market predictions. Notably, willingness to spend has increased for the second month in a row, reaching -6.0 compared to -9.3 in November—matching levels from the previous year. At the same time, the inclination to save has decreased to 13.7 from 15.8. Despite a slight dip into pessimism with economic expectations falling to -1.1 from 0.8, they still surpass last year's figures. Conversely, income expectations have turned negative, shifting to -0.1 from 2.3, indicating ongoing financial pressure on households. Present consumer sentiment shows almost no variation from the previous year, a positive signal for retailers anticipating consistent holiday season sales, as highlighted by Rolf Buerkl, head of consumer climate at NIM. Nonetheless, Buerkl reminds us that while consumer sentiment is robust, there is no expectation of a swift economic recovery in the near future.