The mood of German consumers improved somewhat at the turn of the year. This emerges from a current study, the results of which were presented by the German Trade Association (HDE) on Monday.
“After consumer sentiment ended the year in December 2025 at its lowest level in a year, the new year 2026 begins with a slight improvement in sentiment,” explained the industry organization, citing the HDE consumer barometer for January. The monthly index, which is based on a survey of 1,600 people on consumption-related topics, had increased slightly compared to the previous month of December.
At the same time, the HDE dampened the hopes of the retail industry: “Consumer sentiment is better than a year ago. However, purchasing reluctance remains,” emphasized the association.
According to the current consumer barometer, those surveyed were more confident about the development of the overall economy. “The year 2026 is associated with the hope of an economic recovery,” explained the HDE. Consumers are “overall more optimistic than a year ago” in this regard.
The trade association sees the federal government as having a duty
However, there are still “major uncertainties that could lead to continued reluctance to purchase.” The trade association now sees politics as having its turn. The federal government is “asked to implement its political plans and ensure sustainable growth,” said the HDE. “This is the prerequisite for a recovery in private consumption.”
Due to the confident assessment of economic developments, the consumers surveyed in January were more optimistic than recently with regard to their individual incomes. Nevertheless, a boost to private consumption is apparently not expected for the time being: the propensity to buy has fallen compared to the previous month, explained the HDE. At the same time, the propensity to save is increasing.
“In the coming weeks, consumers seem to want to build up a financial cushion, so that no major growth in private consumption is to be expected,” the industry organization summarized. “Consumers will probably only give up their reluctance when the economic conditions improve significantly.”