Finance
German consumer confidence dims as Christmas shopping season falters
Published by Global Banking and Finance Review
Posted on December 1, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 1, 2025
2 min readLast updated: January 20, 2026
German consumer confidence drops to its lowest this year, affecting Christmas shopping and raising concerns for Europe's largest economy.
By Maria Martinez
BERLIN, Dec 1 (Reuters) - German consumer sentiment has slumped to its lowest point of the year, just as shoppers should be flocking to stores for Christmas gifts, raising concerns about the health of Europe's largest economy during what retailers call the "golden quarter".
The consumer barometer fell to 95.2 points in December from 95.6 points in November, according to a survey of 1,600 people conducted by the German Retail Association (HDE) and released on Monday.
"The pre-Christmas period therefore has no positive effect on consumer sentiment," the HDE said, adding that 2025 appears to be "a lost year that offers no hope of an imminent economic recovery".
The timing could hardly be worse for retailers. In November and December, the retail sector generates around a fifth of its annual turnover, with toy stores and other specialised retailers depending even more heavily on Christmas shoppers.
SHOPPERS TIGHTEN PURSE STRINGS
Private consumption is a key driver of Germany's economy, but the data revealed that Germans are increasingly choosing to save rather than spend.
The HDE attributed this caution to persistent economic uncertainty, noting that consumers' expectations for overall economic growth have fallen to their lowest level since early 2024.
The crucial Christmas shopping period, which kicked off with Black Friday last week and the first weekend of Advent, has disappointed retailers so far.
In an HDE survey of 300 companies, 70% reported a drop in visitor numbers compared to the previous year.
"Christmas business is now entering the hot phase, but still has to pick up speed," said HDE managing director Stefan Genth.
Despite the subdued start, retailers are expecting sales of 126.2 billion euros ($146.6 billion) over the Christmas period, representing a 1.5% increase compared to the previous year.
($1 = 0.8608 euros)
(Reporting by Maria MartinezEditing by Ros Russell)
Consumer confidence is a measure of how optimistic or pessimistic consumers are regarding their expected financial situation and the overall economic outlook. It influences spending and saving behaviors.
Private consumption refers to the total value of all goods and services consumed by households. It is a key component of economic activity and reflects consumer spending patterns.
The retail sector encompasses businesses that sell goods and services directly to consumers. It plays a crucial role in the economy, particularly during peak shopping seasons like Christmas.
A consumer barometer is an index that measures consumer sentiment and confidence levels. It helps gauge the economic outlook based on consumer attitudes and spending intentions.
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