The latest survey shows that German consumer sentiment has sharply decreased as October approaches, primarily due to rising energy prices affecting households’ income expectations. The consumer sentiment index dropped to -30.6 points from -26.8 in September, illustrating a more pronounced decline than analysts had predicted.
Key points include:
- Income expectations plummeted to -15.0, marking its lowest since April 2026.
- Households’ willingness to save increased notably to 21.5, the highest level since the 2008 financial crisis, particularly among wealthier households.
- Willingness to buy saw a slight decline to -10.8, remaining close to its year-ago level.
- Economic expectations improved slightly to -3.4, reflecting better-than-expected economic performance in the first half of 2026.
The survey, conducted from September 3–14 with around 2,000 participants, indicates that households are increasingly cautious due to high energy costs. When the consumer sentiment index is below zero, it suggests a decrease in private consumption.
