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Consumer Confidence · Energy Prices · German Economy · Inflation
German consumer sentiment plunged in April, dropping 3.2 points to -28.0, as households brace for higher energy prices and inflation fueled by the ongoing conflict in Iran, according to the GfK market research institute and the Nuremberg Institute for Market Decisions.
This decline was steeper than analysts' expectations of -27.0 points. Consumers' income expectations and economic expectations plummeted into negative territory, with economic expectations reaching their lowest level since December 2022.
Rolf Buerkl, head of consumer climate at NIM, stated that 60% of Germans anticipate long-term high prices for oil, gas, and petrol, negatively impacting consumer mood. Separately, Italian consumer morale also fell to 92.6 in March from 97.4, its lowest since October 2023, following the US-Israeli attack on Iran, as reported by ISTAT.
The IMK institute warned that a prolonged Iran conflict will reduce German GDP growth to just 0.2% in 2026, significantly below its main scenario forecast of 0.9%.
German Consumer Confidence Plummets on Iran War Fears(current)
