German Consumer Confidence Falls to Lowest Level Since May

German consumer confidence declined more than expected in September; the NIM consumer climate index dropped to -30.60 points for October—its lowest level since May—pressured by rising energy prices and a deterioration in household income expectations.

Income expectations fell by 16.70 points to -15.00, while the propensity to save rose to 21.50—the highest level since the 2008 financial crisis—as households sought to cope with the rising cost of living. Meanwhile, the propensity to buy declined to -10.80, reflecting continued weakness in private consumption.

In contrast, economic expectations improved for the fifth consecutive month, supported by the German economy's better-than-expected performance during the first half of 2026, with GDP growth projected at slightly over 1% for both 2026 and 2027. However, experts believe that rising energy prices, labor market uncertainty, and high interest rates continue to hinder the translation of economic improvement into household spending.