BERLIN, Feb 25 (Reuters) – Consumer sentiment in Germany is set to worsen unexpectedly in March, with households showing significantly less willingness to spend amid geopolitical tensions and concerns about government social policies, a survey showed on Wednesday.
The consumer sentiment index, published by the GfK market research institute and the Nuremberg Institute for Market Decisions (NIM), fell to -24.7 points for March from a revised -24.2 points the month before, contrary to analysts’ expectations of a rise to -23.1.
Overall sentiment was pulled down by a decline in consumers’ willingness to buy, at -9.3 points in February from -4.0 in January. A 1.0-point increase in the readiness to save also contributed.
“Even though the economy appears to be recovering slightly, consumers remain skeptical,” said Rolf Buerkl, head of consumer climate at NIM.
“Geopolitical tensions, but also challenges in social policy, are likely to keep uncertainty and thus also the willingness to save high,” he added.
Consumers’ economic expectations for the next 12 months fell more than 2 points month on month, to 4.3 points, but were still roughly 3 points higher than last year’s level.
Europe’s biggest economy is struggling to gain traction as geopolitical uncertainty, high operating costs and weak domestic demand weigh on companies, with growth in 2026 expected to be driven largely by statistical and calendar effects.
MAR FEB FEB
2026 2026 2025
Consumer climate -24.7 -22.6
-24.2
Consumer climate components
FEB JAN FEB
2026 2026 2025
– economic expectations 4.3 6.6 1.2
– income expectations 6.3 5.1 -5.4
– willingness to buy -9.3 -4.0 -11.1
– willingness to save 18.9 17.9 9.4
The survey period was from January 29 to February 9, 2026.
An indicator reading above zero signals year-on-year growth in private consumption. A value below zero indicates a drop compared with the same period a year earlier.
According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1% in private consumption.
The “willingness to buy” indicator represents the balance between positive and negative responses to the question: “Do you think now is a good time to buy major items?”
The income expectations sub-index reflects expectations about the development of household finances in the coming 12 months.
The economic expectations index reflects respondents’ assessment of the general economic situation over the next 12 months.
($1 = 0.8618 euros)
(Reporting by Friederike HeineEditing by Madeline Chambers)
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