German Consumers Grow Slightly Gloomier on Lingering Inflation Concerns

By Don Nico Forbes

Consumer confidence in Germany fell slightly as higher energy costs driven by the war in Iran continue to pile pressure on household finances.

Germany's consumer-climate index, published Wednesday by the Nuremberg Institute for Market Decisions and GfK, fell to minus 30.8 in its forecast for November, from minus 30.6 in October. This was in line with a forecast of economists polled last week by The Wall Street Journal.

"Whilst consumers are increasingly optimistic about economic developments, scepticism still prevails when it comes to their own finances. Growing concerns about inflation and subdued income prospects are dampening the willingness to make major purchases, even though the propensity to save is falling slightly," said Rolf Buerkl, head of consumer climate at NIM.

Inflation in Germany hit 3.3% in September, its highest level since December 2023, driven by the continued rise in energy prices as conflict in the Middle East drags on. Sentiment fell sharply in forecasts for October after renewed U.S. strikes on Iran caused oil prices to spike. Inflation data for October will be published on Friday.

The decline in consumer confidence comes in contrast to sentiment among German businesses, which rose for a sixth straight month in October, according to the ifo Institute. Resilience among manufacturers in particular is driving expectations that Germany will continue its tentative economic recovery in the second half of this year, though falling confidence among households could weigh on these hopes.

Meanwhile, consumer sentiment in France sunk to a 13-year low in October as nationwide protests and questions over the country's finances continued to cloud the economic outlook.

Write to Don Nico Forbes at don.forbes@wsj.com

(END) Dow Jones Newswires

October 28, 2026 03:14 ET (07:14 GMT)