German consumer confidence falls while savings increase for January 2026

The German consumer confidence sharply fell for the beginning of next year, while the estimates for an economic recovery led by consumption weakened, according to a new report.

German market researcher GfK published its Consumer Climate Outlook for 2026 report in collaboration with the Nuremberg Institute for Market Decisions (NIM) on Friday.

The report found that the Consumer Climate Index fell from minus 23.4 points in December to minus 26.9 points in January, its lowest since April 2024, while the expected rate was minus 23.2 points.

Lower wage expectations and a sharp rise in the tendency to save led to the decline in consumer confidence.

The willingness to save surged five points to 18.7 points, its highest since the 2008 global financial crisis.

Wage expectations declined 6.8 points versus the previous month to minus 6.9 points, as well.

GfK experts said the consumers' perceived decline in purchasing power and rising unemployment played key roles in the decline.

"The return of uncertainty due to rising inflation fears and controversial discussions about the future of pensions have certainly contributed to this 17-year high in the savings indicator," said Rolf Burkl, head of consumer climate at NIM, according to the report.

"This is not good news for the final sprint in this year's Christmas business and can also be seen as a false start for Consumer Climate in 2026," he added.