At the beginning of 2025, current data paint a bleak picture for the German economy . According to the HDE Consumer Barometer and the Jimdo-ifo Business Climate Index, both consumer sentiment and the business climate are deteriorating significantly. These developments cast a shadow over the outlook for consumption and growth in the new year.
Consumer sentiment at a low
The HDE Consumer Barometer shows that phone number list consumer sentiment fell in January 2025 to its lowest level since February 2024. After a slight recovery last year, the situation has deteriorated again. Many consumers are uncertain and plan to reduce their spending.
Increase in the propensity to save
Saving is shifting the focus from consumer spending. More and more people want to build up financial reserves, which is slowing private consumption. Without this important growth driver, overall economic momentum remains weak.
Dampened economic expectations
Although economic expectations are slightly more optimistic compared to the previous year, they are declining month-on-month. Consumers do not expect a short-term economic recovery, especially in light of the upcoming federal election and the uncertain political situation.
Negative income expectations
Expectations regarding disposable income are more pessimistic than in the previous month. This is likely due primarily to the tight labor market situation. Many consumers do not expect their income to increase significantly in the near future.
Business climate among self-employed at a low
The ifo Institute also reports a deterioration if your site is slow, difficult to navigate, in the economic situation, particularly among the self-employed and micro-enterprises. The Jimdo-ifo Business Climate Index fell to -23.4 points in December 2024—the lowest level since October 2022.
Challenges in the service sector
The downward trend in the services sector south africa numbers continues. Declining order backlogs and pessimistic sales expectations are weighing on sentiment. Nevertheless, there are some positive developments in the areas of advertising, market research, and management consulting.