Finance
German Consumer Sentiment Slumps in April on Energy Price Fears, Finds GfK
Published by Global Banking & Finance Review®
Posted on March 26, 2026
3 min readLast updated: March 26, 2026
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German consumer sentiment is weakening ahead of April, with the GfK index plunging to –28.0, worse than expected as worries mount over energy-driven inflation and the fragile economic recovery.
German Consumer Sentiment Drops in April as Energy Price Concerns Rise
German Consumer Sentiment and Economic Outlook
BERLIN, March 26 (Reuters) - German consumer sentiment is set to deteriorate heading into April, as households brace for energy prices driven higher by the war in Iran to pump up inflation and hold back Germany's fledgling economic recovery, a survey showed on Thursday.
The consumer sentiment index, published by the GfK market research institute and the Nuremberg Institute for Market Decisions, dropped 3.2 points to land at -28.0 for April.
Analysts polled by Reuters had expected a somewhat smaller drop, to -27.0 points.
Impact of Inflation and Energy Prices
Consumers' income expectations plummeted into negative territory over fears inflation could eat into their buying power, as did their economic expectations, which were at their lowest level since December 2022.
According to the survey, many consumers are concerned that the cautious recovery of the German economy could suffer a serious setback, especially if the conflict were to drag on.
Consumer Perspectives on Energy Costs
"In a recent NIM study, 60% of Germans state that they expect prices for oil, gas and petrol to remain high in the long term. This naturally has a negative impact on consumers' mood," said Rolf Buerkl, head of consumer climate at NIM.
Buying and Saving Propensity
Buerkl added that propensities to buy and to save are not yet showing the effects of the Middle East crisis.
Buying propensity showed only a 1.6-point drop on the month, to -10.9 points in March, while the inclination to save lost 0.4 points, to settle at a very high level of 18.5 points.
Consumer Climate Index Data
APR MAR APR
2026 2026 2025
Consumer climate -28.0 -24.3
-24.8
Consumer Climate Components
MAR FEB MAR
2026 2026 2025
- economic expectations -6.9 4.3 6.9
- income expectations -6.3 6.3 -3.1
- willingness to buy -10.9 -9.3 -8.2
- willingness to save 18.5 18.9 13.8
Survey Methodology and Indicator Explanations
* The survey period was March 5-16,2026. * An indicator reading above zero signals year-on-yeargrowth in private consumption. A value below zero indicates adrop compared with the same period a year earlier. * According to GfK, a one-point change in the indicatorcorresponds to a year-on-year change of 0.1% in privateconsumption. * The "willingness to buy" indicator represents the balancebetween positive and negative responses to the question: "Do youthink now is a good time to buy major items?" * The income expectations sub-index reflects expectationsabout the development of household finances in the coming 12months. * The economic expectations index reflects respondents'assessment of the general economic situation over the next 12months.
Reporting Credits
(Reporting by Miranda Murray, editing by Thomas Seythal)
Key Takeaways
- •Consumer sentiment index fell by 3.7 points to –28.0 for April, deeper than the –27.0 forecast, signaling waning confidence.
- •Income and economic expectations plunged into negative territory, reaching their lowest since December 2022, amid energy price concerns tied to the Iran conflict.
- •While willingness to buy dipped modestly and saving propensity remains elevated, consumers remain cautious and defensive in their spending.
Frequently Asked Questions about German consumer sentiment slumps in April on energy price fears, finds GfK
1What caused the drop in German consumer sentiment in April?
Rising energy prices and inflation concerns, fueled by the war in Iran, caused German households to fear increased costs, dampening consumer sentiment.
2How much did the GfK consumer sentiment index fall for April?
The GfK consumer sentiment index fell by 3.2 points to -28.0 for April.
3What are German consumers' main concerns according to the survey?
Survey respondents are worried about persistent high prices for oil, gas, and petrol, which could hurt their purchasing power and the economic recovery.
4How did income and economic expectations change?
Both income and economic expectations plummeted into negative territory, reflecting fears that inflation will erode household finances.
5What does a negative consumer climate index indicate?
A negative consumer climate index indicates a drop in private consumption compared to the same period a year earlier.
