Shopping habits showing signs of deceleration
Consumer sentiment in Germany has remained subdued in July 2025, according to a survey conducted by GfK and the Nuremberg Institute for Market Decisions (NIM). The survey, which took place between July 3 and 14, 2025, revealed that economic uncertainty, high food prices, U.S. tariffs, and a rising need to save due to income gains are the primary reasons for the ongoing pessimism.
Rolf Buerkl, a consumer expert at NIM, stated that the high savings inclination is a major factor in the deterioration of consumer sentiment. The inclination for major purchases has reached its lowest level since February, with many consumers postponing these purchases due to general uncertainty, high prices, particularly for food, and the desire for financial security.
The survey results, based on approximately 2,000 consumer interviews conducted monthly on behalf of the EU Commission, showed that the consumer confidence index declined to -20.3 in July and further to -21.5 in August 2025. This indicates ongoing pessimism and a subdued willingness to buy.
The cautious stance of German consumers is reflected in their preference to save, which has increased to its highest level since February 2024. The inclination for savings has increased by 2.5 points to 16.4 points. This trend is concerning for the future of consumer spending in Germany, as it limits consumption growth and delays a broader economic recovery tied to consumer spending.
However, there are some positive signs. Income expectations have reached their highest level in a year, supported by solid wage agreements and pension increases. Furthermore, a recent decrease in inflation to two percent is supporting improved income expectations. Consumers anticipate an improved purchasing power, which could potentially stimulate consumer spending in the future.
Despite these positive indicators, the repeated increase in savings inclination is a significant concern, as it suggests a cautious approach to consumer spending in Germany. The recovery in consumer sentiment is still elusive, primarily due to the repeated increase in savings inclination. This creates a fragile outlook where income improvements do not yet translate into stronger consumer demand, restraining domestic economic momentum in mid-2025.
[1] GfK Consumer Confidence Barometer, July and August 2025. [2] Nuremberg Institute for Market Decisions, July and August 2025. [3] EU Commission Consumer Confidence Survey, July and August 2025. [4] Federal Statistical Office of Germany, July and August 2025. [5] Bundesbank Economic Report, July and August 2025.
The finance sector might observe a slowed growth in business due to the increasing savings inclination among German consumers, as reported by Rolf Buerkl, a consumer expert at NIM. The high savings rate, currently at its highest since February 2024, is a major factor in the deterioration of consumer sentiment.
