Savings Surge in Germany: Reduced Shopping, Increased Savings

In Germany, rising unemployment, a surge in corporate bankruptcies, and planned layoffs in many companies are leading to growing concerns about job security. This economic uncertainty is prompting Germans to cut back on spending and focus more on saving.

According to the latest consumer climate report from the Nuremberg-based institutes GfK and NIM, German households are significantly more pessimistic about their financial situation over the next 12 months. The income expectations indicator dropped by 16.2 points in just one month, marking the largest decline in the past two years. A similar drop was last recorded in September 2022, when inflation rates were exceptionally high.

The study, commissioned by the EU Commission, is based on a survey of around 2,000 people conducted between August 1 and 12. The research indicates that consumer confidence in Germany has fallen by 3.4 points to minus 22 in September. This decline reflects a decrease in confidence in economic development and income expectations. While consumer spending inclination is falling, the propensity to save is noticeably increasing.