The majority of German retailers were dissatisfied with business in the week before the first Advent. The outlook for the rest of the all-important Christmas business is also rather cautious.
“Consumer sentiment in Germany continues to decline in December,” said the German Trade Association (HDE) on Monday. The industry organization referred to the current HDE consumption barometer for the current month. The monthly index, which is based on surveys of 1,600 people on consumption-related topics, has fallen “to its lowest level since the beginning of the year,” according to a statement. The depressed mood indicates “a subdued Christmas business without new sales records”.
“The pre-Christmas period therefore has no positive effect on consumer mood,” summarized the association. “Rather, 2025 is a lost year in terms of consumer sentiment, which offers no hope of an early economic recovery.”
Consumers want to save more
According to the current survey, consumers are more pessimistic about the development of the overall economy in December than in the previous month. The corresponding value has fallen “to the lowest level since the beginning of 2024,” explained the HDE. Individual income expectations have brightened somewhat. “This development may be due to the initial relief measures for citizens decided by the federal government,” said the association.
In view of the uncertain economic development, “caution and restraint” among consumers currently prevail, the industry organization emphasized. Therefore, according to the survey results, the propensity to buy has fallen compared to November. Instead of spending, those surveyed want to build up more reserves. “While consumers’ propensity to buy is declining compared to the previous month and there is a moderate Christmas business in prospect, higher savings amounts are planned for the next few weeks,” explained the HDE.