FX.co ★ German Consumer Morale Beats Estimates

Germany's GfK Consumer Climate Indicator saw an increase, reaching -24.1 in February 2026, up from a nearly two-year low of -26.9 in the previous month, surpassing market predictions of -25.8. There was a notable recovery in income expectations, rising to 5.1 from -6.9 in January, indicating reduced pressure on household budgets. Economic expectations also made significant gains, improving to 6.6 from 1.2, suggesting a more positive economic outlook. Additionally, a rise in the willingness to purchase was observed, improving to -4.0 from -7.5, as worries over inflation diminished. However, the propensity to save decreased slightly from its peak since mid-2008, falling to 17.9 from 18.7. According to Rolf Buerkl, head of consumer climate at NIM, "The latest increase shows a considerable recovery from the significant losses experienced last month, although the overall level still remains low." He warned that the recent improvement is vulnerable, given ongoing geopolitical tensions and uncertain trade conditions, and stressed that it remains uncertain if this positive momentum will be maintained in the months ahead.