The consumer crisis in Germany is worsening significantly towards the end of the year. It is reaching a new low, even though many households traditionally spend more in December. Consumer sentiment, the propensity to save, the consumer climate, and inflation are all contributing factors, as uncertainty is influencing decisions and savings are becoming more important. (welt: 19.12.25)
Consumer Crisis in Germany: Consumer Crisis in Germany Drives Up Savings
New data from the GfK and NIM institutes show a noticeable decline. The consumer climate index fell to minus 26.9 points in January, compared to a better result in the previous month. At the same time, the propensity to save rose significantly. Many people are protecting their budgets because they perceive risks and are therefore saving consistently.
The propensity to save reached 18.7 points in December, its highest level since the financial crisis. NIM expert Rolf Bürkl puts this into perspective. He says, translating the original data, that this is “not good news for the final stretch of the Christmas shopping season and, at the same time, a weak start for consumer sentiment in 2026.” This illustrates how deeply the consumer crisis is already impacting everyday life in Germany.
Income expectations are also continuing to decline. The corresponding index fell to minus 6.9 points in December. Many households are therefore anticipating less financial flexibility, and consequently, spending is being prioritized more strictly. Consumer confidence remains low because security seems more important than short-term consumption.
Consumer sentiment is declining because inflation is triggering new price anxieties
Consumer sentiment is suffering primarily due to inflation, as new price anxieties are shaping perceptions. Even if inflation fluctuates temporarily, the feeling persists that everyday life could become more expensive again. This expectation directly impacts consumption and contributes to a prolonged slump in spending.
This is particularly evident in the case of larger purchases. The propensity to buy fell by 1.5 points in December to minus 7.5 points. Many households are postponing planned purchases or canceling them altogether because they want to protect their savings. This is exacerbating the consumer crisis in Germany, which is why retailers are experiencing significantly less stimulus.
At the same time, the consumer climate remains tense, even though discounts are tempting. Those who anticipate uncertain incomes are reacting cautiously, and even attractive offers are rarely enough to sway them. As a result, the consumer climate remains in negative territory.
Consumer sentiment remains weak, even though the pre-crisis years looked very different
Compared to previous years, the shift is significant. Before the coronavirus pandemic, consumer sentiment was consistently positive. Back then, confidence and predictability dominated, while today the effects of several years of crisis are lingering and dampening consumer confidence.
Energy prices, geopolitical risks, and inflation have altered expectations. As a result, the propensity to save continues to rise, while the propensity to buy remains low. In this situation, the consumer crisis in Germany is becoming a key issue for business location, because private consumption is a central driver of growth and because restraint delays the recovery.
If income expectations remain weak and inflation causes concern, the upswing will remain fragile. Only when stability becomes tangible can consumer sentiment improve sustainably, and then purchasing mood could also turn around.