In March 2025, the savings indicator rose significantly by 4.4 points to 13.8, marking the highest level since April 2024.

Conservative leader Friedrich Merz is currently in coalition talks with the Social Democrats, aiming to form a government by or shortly after Easter, although disagreements on immigration persist.

Income expectations increased by 2.3 points to -3.1 in March 2025, although they remain below last year's levels.

Consumer hopes for economic revival have improved, with the relevant indicator rising by 5.7 points to 6.9, but future expectations hinge on the effective implementation of a recently approved financial package.

The German economy contracted for the second consecutive year in 2024, suggesting that recovery may take time as it lags behind other European economies.

Although expectations for income growth and willingness to buy have improved, a greater propensity to save may hinder a stronger recovery in consumer sentiment.

A recent consumer study conducted for the EU Commission, surveying 2,000 individuals between late February and early March 2025, reveals mixed sentiments regarding the German economy.

The GfK consumer climate index for April 2025 shows a slight increase to -24.5 points, up from -24.6 in March, indicating a persistently negative outlook.

NIM consumption expert Rolf Bürkl noted that while the elections have alleviated some consumer pessimism, the rising tendency to save reflects ongoing uncertainty.

The consumer climate index forecasts trends in private consumption, with readings below zero indicating a decrease in year-on-year consumption.

Key factors contributing to the weak consumer climate include high prices, low incomes, and ongoing political and economic uncertainty.

Despite some signs of improvement in consumer mood following the federal elections and approved investment packages, overall sentiment remains low.