Germany’s GfK Consumer Climate Indicator fell to -28 heading into April 2026, from a marginally revised -24.8 in the previous period, coming in below expectations of -26.5. This marks the weakest reading since March 2024, as households brace for a surge in energy costs linked to the Iran conflict, which could fuel inflation and weigh on Germany’s fragile economic recovery. Economic expectations deteriorated sharply (-6.9 vs 4.3 in March), while income expectations also plunged into negative territory (-6.3 vs 6.3), reflecting concerns that rising energy costs could erode purchasing power. The willingness to buy declined further (-10.9 vs -9.3), indicating subdued consumption appetite, while the propensity to save remained elevated at 18.5 (vs 18.9), highlighting continued caution among households.
