Consumer sentiment is ‘improving’ in Germany, and rising at the fastest rate since last summer, according to the latest consumer barometer by the German Retail Association (HDE).
The HDE Consumer Barometer for June 2025 noted that while ‘optimism is growing among consumers’, a more consistent improvement in consumer sentiment will be necessary to drive a noticeable recovery in consumption.
Despite recent improvements, the sentiment index remains ‘significantly below’ last year’s level.
Propensity to buy
Consumers’ propensity to buy is on the increase, the HDE noted, continuing a trend of recent months, however this is echoed by intentions to intensify their savings efforts, a lingering effect of the overall economic environment.
The HDE also noted that German consumers are more confident in their personal income expectations – more so than in the corresponding month a year ago – and are not overly influenced by the more pessimistic economic forecasts of recent weeks.
However, it added that consumers still lack confidence in the overall economic environment to expand their consumption.
‘Ongoing uncertainties’
‘Consumers in Germany are generally more optimistic about the coming weeks, as evidenced by the strongest increase in sentiment in a year,’ it added. ‘However, ongoing uncertainties regarding overall economic development and the tense geopolitical situation are still hindering a noticeable improvement in consumer sentiment.
‘Consumers are only slowly overcoming their reluctance to spend. Further positive signals are needed for a significant recovery in private consumption. The wait for overall economic growth continues.’
The HDE Consumer Barometer, which surveys 1,600 individuals on their expectations for purchasing and saving behaviour over the next three months, is published monthly by the Handelsblatt Research Institute (HRI) on behalf of the German Retail Association (HDE). Read more here.
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