Rolf Buerkle, Head of Consumer Climate at NIM, pointed out that the indicator, known as the NIM Consumer Climate Index based on GfK, reached its lowest level since February 2023.
“Inflation leads to lower income expectations,” Burkle emphasized, pointing to a sharp drop of 18.1 points to -24.4 in the corresponding index.
In March 2026, Germany’s EU-standardized inflation rate was 2.8 percent, the result of a sharp rise in energy prices. Economists predict inflation will rise further due to the protracted war in Iran.
“People also feel that now is a less good time to make major purchases,” said Buerkle, adding that the household propensity score for shopping has hit a two-year low.
Consumers have become more pessimistic about the outlook for Europe’s largest economy, with expectations for the economic situation falling 6.8 points to -13.7.
This level is close to the indicators of April 2022, when the war in Ukraine started.
