German consumer sentiment is expected to weaken further in January as households save more amid renewed inflation fears and economic uncertainty, a survey showed Friday.
The GfK consumer climate index is forecast to fall by 3.5 points to minus 26.9, its lowest level since April 2024.
“Consumer sentiment in Germany is disappointing at the end of the year,” said Rolf Buerkl, head of consumer climate at GfK, calling the decline a “false start” for confidence heading into 2026.
The survey said households’ propensity to save climbed to its highest level since the 2008 financial crisis, driven by inflation concerns and debates over domestic economic policy. Expectations for earnings fell for a third straight month, reflecting worries about real wages.
Labor market concerns also weighed on confidence. The ifo Institute reported its employment barometer dropped in December to the lowest level in more than five years.
Economic expectations improved slightly, but GfK said the sub‑index was only 0.9 points higher than a year earlier, suggesting consumers see only a modest recovery in 2026.
German research institutes last week forecast growth of 0.8 to 1 percent in 2026 after the economy barely expanded in 2025. They now expect Europe’s largest economy to grow just 0.1 percent this year.