The German consumer confidence leading index has fallen to its lowest level in nearly two years.

A report released by the German market research institute GfK on the 19th showed that, influenced by a significant deepening of the savings willingness, the forward-looking consumer confidence index in Germany for January 2026 fell by 3.5 points from the revised data for December this year to -26.9 points, the lowest level since April 2024. The report indicated that among the key indicators reflecting German consumer confidence, the income expectations index has declined for the third consecutive month, reaching the lowest level in two years; the buying propensity index has also decreased, showing weaker overall performance throughout 2025 compared to the previous year. In contrast, the economic outlook index has slightly rebounded month-on-month, but overall remains stagnant. The report stated that the index only increased by 0.9 points year-on-year, indicating that consumers remain cautious about the German economic outlook in 2026.