German consumer confidence slumps as energy costs bite

FRANKFURT, Sept 25 (Reuters) - German ‌consumer sentiment weakened ​more ​sharply than expected heading into October, as rising energy prices soured households' income outlook, a survey showed on Friday.

The ‌consumer sentiment index, published by the Nuremberg Institute for Market ⁠Decisions and the GfK market research institute, fell to -30.6 points heading into October ‌from a revised -26.8 in September, ‌missing the -27.4 average estimate in a Reuters poll of analysts.

"The majority of households expect that high energy prices will diminish their purchasing ​power," said Rolf Buerkl, head of consumer climate at NIM.

The income expectations sub-index slumped 16.7 points to -15.0, its lowest level since ⁠April 2026, shortly before a fuel discount was introduced.

"Consequently, they are more sceptical about income prospects for ​the next 12 months," he added.

Households' willingness to save jumped 6 points to 21.5, its highest level since ​the 2008 financial crisis, as consumers responded ‌to elevated energy costs, the survey found.

NIM said the rise was especially pronounced among wealthier households.

The willingness to ⁠buy edged down 1 point to -10.8, only slightly above the year-earlier level of -11.6, and has hovered around that mark for more than three years.

Economic expectations, ⁠by contrast, rose half a point to -3.4, a fifth consecutive increase, as Germany's economy ​performed better than expected in the first half of 2026.

OCT 2026 SEP 2026 OCT 2025

Consumer climate -30.6 -26.8 -22.5

Components SEP 2026 AUG 2026 SEP 2025

Economic -3.4 -3.9 -1.4

expectations

Income expectations -15.0 1.7 15.1

Willingness to buy -10.8 -9.8 -11.6

Willingness to save 21.5 15.5 16.1

Price expectations -0.4 -0.2 -6.3

The survey was conducted ‌September 3-14, based on around 2,000 consumer interviews.

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.

(Reporting by Ludwig Burger, editing by ‌Thomas Seythal)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Taiwan denounces Xi's comments to Trump as 'distortion of facts'
• Separated by war, a Ukrainian family faces danger at the front and far away
• Morning Bid: When Treasuries catch Korea's volatility bug, take cover