People in Germany are holding on to their money and thus partially slowing down an upswing through increased consumption.

"Above all, a rising propensity to save is preventing the consumer climate from continuing its recovery," says the study published Thursday by the Nuremberg-based consumer research institutes GfK and NIM. The consumer climate forecast for July thus declines slightly by 0.3 points to minus 20.3 points.

"After three consecutive increases, the consumer climate has suffered another slight setback," said Rolf Bürkl, consumer expert at NIM. The increased propensity to save is offsetting the positive impetus provided by improved income prospects and increased economic expectations. Consumers' high propensity to save is also a reflection of their ongoing uncertainty and thus a lack of planning security.

Hope for recovery

From a consumer perspective, however, the signs of a recovery in the German economy are increasing in the coming months. The economic indicator climbed to 20.1 points after a significant increase of seven points. This is the highest reading since the beginning of the war in Ukraine, the institutes further reported. In February 2022, it was measured at 24.1 points.

"Many consumers apparently expect the economy to recover in the remainder of 2025," according to NIM and GfK. This hope is based primarily on the billion-euro injections for infrastructure and defense approved in Berlin. This optimism is supported by the economic forecasts of Germany's leading economic research institutes.

For the study, commissioned by the EU Commission in Brussels, 2,000 consumers are surveyed monthly. The current survey period was between May 30 and June 11.