Germany's hospitality industry recorded a significant decline in revenue in May, with nominal sales falling 2.0% compared to the previous month, according to data released Tuesday by the Federal Statistical Office (Destatis).
The drop marks a notable reversal for a sector that has been a key barometer of consumer confidence in Europe's largest economy.
The decline underscores the fragility of domestic demand as households continue to face elevated living costs.
While the headline figure reflects a month-on-month contraction, the data suggests that price-adjusted figures may show an even steeper downturn, indicating that volume declines are outpacing any inflationary support from menu price increases.
This trend aligns with broader signals of weakening consumer appetite across discretionary categories.
The contraction in German hospitality mirrors similar pressures observed in other major economies.