Overview
- The NIM/GfK report released Monday put the consumer climate for May at minus 33.3, down 5.2 points to the weakest reading since February 2023, based on interviews with about 2,000 people from April 2 to 13.
- NIM’s Rolf Bürkl said income expectations have plunged because inflation has risen, with Germany’s headline rate climbing to 2.7 percent in March largely on higher energy prices.
- Willingness to buy big-ticket items such as cars and furniture fell for the third straight month to a two-year low, signaling softer household demand.
- Saving propensity slipped slightly yet remained high at 16.1 points, showing many households still prefer to hold on to cash.
- Broader signals also weakened as the ifo business climate dropped in April to 84.4, the lowest since May 2020, and Berlin cut its 2026 growth forecast to 0.5 percent.