German Consumer Sentiment Slumps in April on Energy Price Fears, Finds GfK

German consumer sentiment has slumped in April due to concerns over rising energy prices. According to a recent survey by GfK, the consumer confidence index fell to -14.5 in April, down from -12.9 in March. This decline is largely attributed to the increasing cost of living, particularly energy prices, which have been a major concern for German households.

Rising Energy Prices Weigh on Consumer Confidence

The survey found that 71% of respondents cited energy prices as a major concern, with 45% stating that they expect energy prices to rise further in the coming months. This has led to a decrease in consumer spending, with 62% of respondents reporting that they have reduced their spending on non-essential items.

Impact on the Economy

The decline in consumer confidence has significant implications for the German economy, which is heavily reliant on consumer spending. A prolonged decline in consumer confidence could lead to a slowdown in economic growth, potentially affecting the overall European economy.

GfK's Survey Methodology

GfK's consumer confidence index is based on a survey of 2,000 households in Germany, conducted between March 21 and 27, 2026. The survey asks respondents about their expectations for the coming months, as well as their current spending habits.

Conclusion

The decline in German consumer sentiment is a concerning trend, particularly in light of the ongoing energy crisis. As energy prices continue to rise, it is likely that consumer confidence will remain low, potentially affecting the broader economy.

Sources

[1] German consumer sentiment slumps in April on energy price fears, finds GfK
[2] Japan stocks lower at close of trade; Nikkei 225 down 0.48%
[3] Delivery Hero posts record 2025 profit, takes $1.4 bln loan to repay bonds