Germany’s Consumer Confidence Climate Indicator fell to -22.4 for February 2025, down from a revised -21.3 in the previous period. This decline was sharper than expected, as market forecasts had predicted a milder drop to -20. The data highlights ongoing economic struggles, with consumers feeling the pressure of a sluggish recovery, rising layoffs, and factory closures.

Weaker Economic and Income Expectations

Economic outlook sentiment deteriorated, with the economic prospects index falling into negative territory at -1.6, compared to 0.3 in January. Similarly, income expectations weakened, dropping to -1.1 from 1.4 in the previous period. These figures indicate growing concerns among German households about their financial stability, as inflation remains a persistent challenge.

Declining Willingness to Spend

Consumers have also become more cautious with their spending. The willingness to buy index declined to -8.4, down from -5.4 in January, signaling that economic uncertainty is dampening household consumption. At the same time, the propensity to save increased to 8.2, up from 5.9, as people prioritize financial security ahead of Germany’s upcoming elections.

Expert Insights: No Sustainable Recovery in Sight

Rolf Bürkl, a consumer expert at Nürnberg Institut für Marktentscheidungen (NIM), noted that “the consumer climate has suffered another setback.” He emphasized that a sustainable recovery remains out of reach, particularly with inflation showing signs of an upward trend again. As economic challenges persist, consumer confidence is likely to remain fragile in the coming months.

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