Germany’s GfK Consumer Climate Indicator edged down to -20.3 heading into July 2025 from a marginally revised -20.0 in the previous month, marking the first drop in four months and missing market forecasts of -19.3. The propensity to save hit a 13-month high (13.9 vs 10.0), while willingness to buy remained weak (-6.2 vs -6.4). Still, economic expectations climbed (20.1 vs 13.1), pointing to the highest since the start of the Ukraine war in February 2022, supported by upcoming government stimulus for defense and infrastructure.
Income expectations also improved for a fourth month (12.8 vs 10.4), on favorable wage agreements and easing inflation. “A high willingness to save is an expression of continuing uncertainty and lack of planning security,” said Rolf Bürkl, consumer expert at NIM, noting this weighs on major purchases. The report also cited caution driven by uncertainty over U.S. trade policies.
