German consumer sentiment slips on inflation fears, survey shows

German Consumer Sentiment Dips as Inflation Fears Weigh on Spending

Overview of German Consumer Sentiment and Economic Indicators

FRANKFURT, Oct 28 (Reuters) - German consumer sentiment is set to slip marginally heading into November, a survey showed on Wednesday, amid growing inflation and subdued income prospects.

The consumer sentiment index, published by the Nuremberg Institute for Market Decisions (NIM) and the GfK market research institute, fell to -30.8 points for November from -30.6 in October, slightly better than the average estimate of -30.9 in a Reuters poll of analysts.

Consumer Reactions and Expert Insights

"Consumers are looking increasingly optimistically at economic developments, but when it comes to their own wallets, scepticism still prevails," said Rolf Buerkl, head of consumer climate at NIM.

"Growing worries about inflation and subdued income prospects are dampening willingness to make larger purchases, even if the propensity to save is falling somewhat," he added.

Shifts in Economic and Income Expectations

Consumers' economic expectations improved for a sixth consecutive month, rising to 2.1 points from -3.4 and moving above zero for the first time since the outbreak of the Iran war.

Income expectations fell by 0.7 points to -15.7, a modest decline after last month's slump and despite a higher inflation rate.

Willingness to Buy and Save

Willingness to buy lost slightly more than a point to reach -11.9, while the price expectations indicator rose to 1.0 points, into positive territory.

NIM said that suggested consumers again expect somewhat higher inflation, after inflation rose to 3.3% in September on higher fuel prices.

Willingness to save, which had risen sharply last month, fell by 4.3 points to 17.2, which remains high but supports the consumer climate.

Key Consumer Sentiment Data

  NOV 2026 OCT 2026 NOV 2025

Consumer climate -30.8 -30.6 -24.1

Components OCT 2026 SEP 2026 OCT 2025

Economic expectations 2.1 -3.4 0.8

Income expectations -15.7 -15.0 2.3

Willingness to buy -11.9 -10.8 -9.3

Willingness to save 17.2 21.5 15.8

Survey Methodology and Index Explanation

NOTES:

The survey was conducted October 1-12, 2026, among about 2,000 consumers.

The consumer sentiment index is designed to forecast consumer behaviour in the following month.

A one-point change in the indicator corresponds to a year-on-year change of 0.1% in private consumption.

A reading above zero indicates year-on-year growth in private consumption. A value below zero indicates a drop.

Income expectations show how consumers assess the development of their household's financial situation over the next 12 months.

Economic expectations show how consumers assess the development of Germany's general economic situation over the next 12 months.

(Writing by Ludwig BurgerEditing by Linda Pasquini)