German GfK Consumer Confidence To Fall Further

(RTTNews) - German consumer confidence is set to continue to fall in September as rising fear of job losses weighed on purchase decisions and damped hopes of robust economic recovery, a closely watched survey showed on Wednesday.

The forward-looking GfK consumer sentiment index fell to -23.6 in September from -21.7 in the previous month. The reading was forecast to drop moderately to -22.

"With the third consecutive decline, consumer sentiment is now definitely in the summer slump," NIM Head of Consumer Climate Rolf Burkl said.

"Growing fear of job losses is causing many consumers to remain cautious about making major purchases," said Burkl. "This further dampens hopes for a robust recovery in consumer sentiment before the end of the year," added Burkl.

There was a sharp decline in income expectations, while propensity to save dropped only moderately. After rising for five consecutive months, income prospects of consumers suffered a severe setback in August largely due to fear of job losses. The corresponding index dropped 11.1 points to 4.1, the lowest since last March.

Moreover, ongoing uncertainty about consumer prices also weighed on sentiment. The geopolitical situation and the US government's tariff policy are raising concerns that energy prices could increase again.

Consequently, consumers' inflation expectations rose for the second month in a row in August.

In line with the fall in income expectations, the willingness to make purchases also declined in August. The index slid 0.9 points to -10.1, the worst since February 2025.

Economic expectations deteriorated significantly for the second straight month in August. The indicator posted -7.4, the lowest in six months.

Rising unemployment, the somewhat bumpy start of the new federal government, and the uncertain tariff policy of the US are not currently creating a mood of optimism among consumers, GfK said.

The survey jointly published by NIQ/GfK and the Nuremberg Institute for Market Decisions was conducted between July 30 and August 11.