2026.04.2706:09:26UTC+00German Consumer Morale Hits Three-Year Low

Germany’s GfK Consumer Climate Indicator fell to –33.3 heading into May 2026, down from a slightly revised –28.1 in April, marking its weakest reading since February 2023. The decline underscores mounting pressure on households as rising energy costs drive inflation higher, with prices expected to increase further if the conflict involving Iran persists.

Income expectations dropped sharply to –24.4 (from –6.3 in April), while economic expectations deteriorated to –13.7 (from –6.9), approaching levels last seen at the onset of the Ukraine war in 2022. Consumers are increasingly worried that Germany’s fragile economic recovery could suffer a significant setback if the conflict continues and policy responses fail to gain traction.

At the same time, willingness to buy fell to a two-year low of –14.4 (from –10.9), underscoring weak consumption. Although the propensity to save edged down to 16.1 (from 18.5), it remained comparatively high, signaling ongoing caution among consumers.