After months of decline, the mood of German consumers apparently brightened somewhat in June. This emerges from a current study, the results of which were published by the German Trade Association (HDE) on Monday.
Accordingly, the HDE consumption barometer, which is based on a monthly survey of 1,600 people on consumption-related topics, rose slightly for the first time since February. Despite the trend reversal, consumer sentiment remained “at a weak level” in June, the industry organization emphasized. The reason for this is the “ongoing global conflicts”, in particular the Iran War and the resulting price increases.
The propensity to buy is increasing again
Compared to the previous month of May, respondents’ expectations regarding general economic developments again fell slightly. However, consumers assessed their own income situation somewhat more positively.
At the same time, the propensity to buy increased slightly. In return, the intention to invest savings decreased. In June, “a slight shift from saving to consumption” was observed, the study authors explained. “However, there is still no talk of a sustainable “recovery” in private consumption.”
Trade association draws “very negative” balance of the first half of the year
Overall, the HDE therefore sees no reason for optimism. “After the first half of 2026, the balance will be very negative,” emphasized the association. “Despite a slight increase in consumer sentiment in June, it is too early to predict a glimmer of economic hope for the second half of the year.”
According to the industry organization, it is “crucial that the Iran war ends promptly” for an “upturn in willingness to consume”. In addition, “further relief announced by politicians” is necessary in order to “stimulate consumer sentiment and the economy”. Whether this will be successful “will become apparent in the coming weeks and months,” explained the HDE.