2026.03.2607:06:30UTC+00German Consumer Morale Weakest in Two Years

Germany’s GfK Consumer Climate Indicator fell to -28 heading into April 2026, down from a slightly revised -24.8 in the previous month and below market expectations of -26.5. This is the weakest reading since March 2024, as households brace for a surge in energy prices linked to the Iran conflict, a development that could stoke inflation and further undermine Germany’s fragile economic recovery.

Economic expectations deteriorated sharply, dropping to -6.9 from 4.3 in March, while income expectations also slipped into negative territory, falling to -6.3 from 6.3. Both shifts reflect mounting concerns that higher energy costs will erode real purchasing power. The willingness to buy declined further, to -10.9 from -9.3, signaling subdued consumer appetite for spending. At the same time, the propensity to save remained high at 18.5, only slightly below 18.9 previously, underscoring the continued caution of German households.