Germany’s GfK Consumer Climate Indicator rose to -29.3 heading into June 2026 from a revised -33.1 in May, defying expectations of a further deterioration to -34. The improvement was driven mainly by a rebound in income expectations, which rose sharply by 11.4 points to -13.0, supported by the Middle East conflict not having escalated further yet and expectations of potential government relief measures. Economic expectations also improved slightly to -11.2 from -13.7, although most consumers still anticipate weaker economic conditions over the next 12 months. Meanwhile, willingness to buy edged higher to -13.2 from -14.4 but remained subdued, signaling continued caution toward major purchases. The propensity to save declined for a third consecutive month to 13.9 from 16.1, though it remained elevated by historical standards. Inflation concerns also eased, with price expectations falling to -0.4 from 5.8, partly due to reductions in energy taxes on diesel and gasoline.