German consumer confidence remains low

The German consumer climate for November 2026 remains deteriorated, according to a survey published on October 28 by the NIM/GfK institute. While households show increased confidence in the broader economy, they remain cautious about their personal incomes and major purchases. The consumer climate indicator for November stands at −30.8 points, compared to −30.6 points in the previous month and −22.5 points a year earlier.

Economic expectations improve but income concerns linger

Economic expectations have improved for the sixth consecutive month, reaching 2.1 points and returning to positive territory. However, income expectations have declined by 0.7 points, reaching −15.7 points. This indicates that while respondents anticipate an improvement in the overall economic situation, they remain concerned about their personal financial conditions.

Consumption intentions show mixed signals

The gap between general economic expectations and personal financial concerns is also reflected in consumption intentions. The indicator for willingness to make major purchases, such as furniture or equipment, has declined by just over one point to −11.9. The desire to save has also decreased, from 4.3 points to 17.2, but remains high. This suggests that the decline in saving propensity has not yet translated into increased spending.

Survey reflects declared opinions, not actual sales

The survey, based on approximately 2,000 interviews conducted from October 1 to 12 on behalf of the European Commission, reflects declared opinions and expectations rather than actual sales figures. Inflation continues to influence purchasing decisions, with German inflation reaching 3.3% year-on-year in September, primarily driven by fuel prices. Despite the improvement in general economic expectations, households remain uncertain about the cost of their current expenses.

Fuel support measures have limited impact

The institute notes that fuel support measures have not led to a significant rebound in income expectations, similar to what was observed in the spring. This assessment is based on consumer responses and does not constitute a budgetary evaluation of these measures.

Weak consumer spending affects European markets

The weakness in German consumer spending has implications for European demand, as household demand contributes to the activity of retailers, manufacturers, and service providers operating in the German market, including European companies. A sustained recovery in German household spending could support these markets, but the October survey does not yet show a recovery in purchase intentions.

Next update due on November 26

The NIM monthly barometer will be updated on November 26, which will provide further insight into whether renewed economic optimism begins to influence the decisions of German households.