Consumer sentiments remain static, prompting restrained consumer decisions - Food labeling legislation across EU countries is being harmonized through a proposed directive, with the Commission offering input on the matter.
The German Retail Federation (HDE) has raised concerns about a potential negative trend in consumer sentiment, as indicated by the latest HDE consumer barometer[1]. After several months of slow growth, consumer confidence has stalled in August 2025, with consumers continuing to act cautiously and without strong expectations for a near-term economic recovery.
According to the HDE, the current stagnation in consumer sentiment may not necessarily indicate a positive trend, depending on upcoming economic policies and geopolitical developments[1]. The HDE consumer barometer, based on a monthly survey of 1,600 citizens, measures purchase intentions, savings intentions, financial situation, and other consumption-related factors[2].
Key points from the HDE report include:
- Consumers are not fearful of an imminent recession but also do not expect significant economic growth soon.
- While personal income outlooks slightly improved, concerns about rising prices persist.
- The willingness to buy has only marginally increased, whereas saving tendencies have grown notably.
- Overall, caution governs consumer behavior, and a noticeable recovery in private consumption is not anticipated shortly[1].
This cautious consumer stance contrasts with some positive signals earlier in mid-2025, such as a slight rebound in retail sales and stabilization of inflation around 2.1%. However, these gains have not yet translated into sustained consumer optimism or spending increases across all sectors[2].
The HDE consumer barometer, published on the first Monday of each month, is a key indicator of consumer sentiment in Germany. Its results may influence retailers' strategies and decisions[2]. The current level of the HDE consumer barometer, which reached its highest level in a year in July at 97.73, does not fully reflect current consumer behavior but rather the expected sentiment in the next three months[2].
As consumers continue to save more and spend less, the HDE's warning serves as a reminder for policymakers and retailers to address the underlying uncertainties in the economic environment to prevent a potential negative sentiment trend[1].
References: [1] German Retail Federation (HDE). (2025). HDE consumer barometer: Consumer sentiment stagnates in August 2025. Retrieved from https://www.hde.de/de/presse/pressemitteilungen/hde-consumer-barometer-konsumenten-sentiment-bleibt-im-august-2025-stagnierend [2] Statista. (2025). German retail sales 2025. Retrieved from https://www.statista.com/statistics/1025308/german-retail-sales/
EC countries might consider increasing funding for vocational training programs in response to the stagnating consumer sentiment in Germany, as a skilled workforce could potentially boost business and stimulate economic recovery. As the HDE consumer barometer indicates, consumers are saving more and spending less, thereby highlighting the need for policies that encourage spending and confidence in the business environment.
