Wednesday January 18 2017
German Inflation Rate Confirmed At Highest Since July 2013
Destatis l Rida Husna | rida@tradingeconomics.com

Consumer prices in Germany rose 1.7 percent year-on-year in December of 2016, compared to a 0.8 percent rise in November and matching preliminary estimates. It was the highest inflation rate since July 2013, due to a faster increase in prices of food and services and a surge in cost of transport.

Year-on-year, energy cost (total) increased by 2.5 percent, following a 2.7 percent drop in November. Prices were up sharply for mineral oil products (+9.0 percent, of which light fuel oil: +21.9 percent, motor fuels: +6.0 percent). Prices went up slightly for electricity (+0.9 percent) and solid fuels (+0.1 percent). In contrast, cost fell for central and district heating: -6.4 percent and gas prices: -2.7  percent.

Prices of food and non-alcoholic beverages went up 2.3 percent, after gaining 1.2 percent in the previous month. Prices increased markedly for edible fats and cooking oils (+12.3 percent) and vegetables (+9.7 percent). Also, prices were higher for fish and fish products (+3.3 percent), fruits (+1.4 percent) and confectionery (+1.3 percent).

Cost of goods as a whole rose 1.8 percent, following a 0.5 percent rise in the preceding month, mainly as a result of increases in energy and food prices. Cost of services rose 1.5 percent in December, following a 1.1 percent gain in the previous month. Among services, cost went up for: maintenance and repair of vehicles (+2.3 percent), insurance (+2.3 percent) and social services (+4.3 percent). In contrast, cost dropped for telecommunication services (-1.2 percent).

On a monthly basis, consumer prices went up 0.7 percent, after gaining 0.1 percent in the prior month and in line with consensus. It was the highest figure since March 2016. Cost went up for: energy (+2.3 percent,  including heating oil: +11.7 percent; motor fuels: +3.6 percent) and services (+1.1 percent, mainly due to a 20.9 percent rise in package of holidays). Prices also increased for food and non-alcoholic beverages (+0.7 percent). In contrast, cost of clothing & footwear declined by 2.3 percent.

The harmonized index of consumer prices (HICP) rose 1.7 percent from a year earlier, following a 0.7 percent rise in November. On a month-on-month basis, the index increased by 1.0 percent, after remaining unchanged in the preceding month and matching preliminary figures.




Monday January 09 2017
German Trade Surplus Widens in November
Destatis l Rida Husna | rida@tradingeconomics.com

Germany posted a EUR 22.6 billion trade surplus in November of 2016, compared to a EUR 20.5 billion surplus reported a year earlier, as exports rose more than imports.

In November, sales grew by 5.6 percent from a year earlier to EUR 108.5 billion while imports went up 4.5 percent t0 EUR 85.8 billion. 

Germany exported goods to the value of EUR 63.2 billion (+4.3 percent year-on-year) to the Member States of the European Union, while it imported goods to the value of EUR 56.9 billion (+4.8 percent) from those countries. Goods to the value of EUR 39.7 billion (+5.2 percent) were dispatched to the Euro Area countries while the value of the goods received from those countries was EUR 38.0 billion (+3.0 percent). Sales to EU countries not belonging to the Euro Area increased by 2.8 percent to EUR 23.6 billion while the value of the goods which arrived from those countries was EUR 19.0 billion (+8.5 percent). Exports to countries outside the European Union amounted to  EUR 45.2 billion in September 2016 (+7.6 percent) while imports from those countries totaled EUR 28.9 billion (+3.9 percent). 

In October 2016, trade surplus was marginally revised to EUR 19.4  billion.

On a seasonally adjusted basis, exports rose 3.9 percent from the previous month while imports increased by 3.5 percent.




Tuesday January 03 2017
German Inflation Rate Rises To Highest Since July 2013
Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com

German consumer prices are expected to increase by 1.7 percent in the year to December 2016, following a 0.8 percent rise in the previous month and beating market consensus of a 1.5 percent gain. It was the highest inflation rate since July 2013, mainly boosted by a rebound in energy prices while cost of food and rents continued to grow, the preliminary estimate showed.

Year-on-year, prices of goods are expected to advance 1.8 percent, compared to 0.5 percent growth in the previous month, as cost of energy rose by 2.5 percent (from -2.7 percent in November) and food prices also increased by 2.5 percent (from +1.2 percent). Prices of services are expected to grow by 1.5 percent, following a 1.1 percent gain the previous month, mainly boosted by a 1.5 percent rise in cost of rents (from +1.1 percent in November).

Compared with November 2016, consumer prices are expected to increase by 0.7 percent, after rising by 0.1 percent in the previous month and better than expectations of a 0.6 percent advance.

The harmonised index of consumer prices is expected to increase by 1.7 percent from the previous year and it is expected to jump 1 percent from the previous month.


Tuesday January 03 2017
Germany Unemployment Rate Steady At 35-Year Low of 4.1%
Destatis | Joana Taborda | joana.taborda@tradingeconomics.com

German seasonally adjusted harmonised jobless rate was unchanged at 4.1 percent in November of 2016, remaining at the lowest since February of 1981. The number of unemployed fell 0.6 percent and employment rose 0.2 percent.

Compared with the previous month, the number of unemployed persons declined by 0.6 percent to 1.76 million from 1.77 million and employment edged up 0.2 percent to 41.65 million from 41.57 million.

Compared with a year earlier, unemployment fell by 6.4 percent from 1.88 million people while employment rose 3.3 percent from 40.33 million people.

Youth unemployment rate decreased to 6.7 percent from 6.8 percent in October and 7.1 percent a year earlier.  

Separate data from the Labour Office showed the number of jobless persons fell by 17 thousand in December and the unemployment rate was steady at 6 percent. 




Tuesday December 13 2016
German Inflation Rate Confirmed at 0.8% in November
Destatis l Rida Husna | rida@tradingeconomics.com

Consumer prices in Germany rose 0.8 percent year-on-year in November of 2016, the same as in October and matching preliminary estimates. Inflation rate remained at its highest level since October 2014, as prices of food rose at a faster pace and cost of services went up less than in a month earlier while cost of transport declined further.

Year-on-year, energy cost (total) decreased by 2.7 percent, following a 1.4 percent drop in October. Prices were down for: central and distric heating: -6.9 percent, heating oil (-6.7 percent), gas: -4.1  percent and motor fuels: -2.2 percent. 

Cost of food and non-alcoholic beverages went up 1.2 percent, after gaining 0.3 percent in the previous month. Prices increased for edible fats and oils (+13.3 percent, including butter: +26.0 percent, and margarine: +2.3 percent, confectionery: +1.4  percent, including chocolate slabs: +6.0 percent), dairy products (+1.5 percent, including hard cheese: +3.1 percent and eggs: +9.0 percent) and fish and fish products (+2.8 percent). In contrast, price fell for vegetables (-0.4 percent).

Cost of goods as a whole rose 0.5 percent, following a 0.4 percent rise in the preceding month. Cost of services rose 1.1 percent in  November, following a 1.3 percent gain in the previous month. Among goods, higher prices were recorded for food (+1.2 percent), motor vehicles (+1.7 percent), tobacco products (+3.0 percent) and newspapers and periodicals (+3.9 percent). In contrast, cost declined for consumer electronic (-4.4 percent). Among services, cost went up for: net rents exclusive of heating expenses (+1.4 percent), catering services in restaurants, cafes and the like (+1.9 percent), insurances (+2.7 percent) and social facilities (+4.1 percent). In contrast, cost dropped for package holidays (-4.1 percent) and telecommunication services (-1.3 percent).

On a monthly basis, consumer prices went up 0.1 percent, after gaining 0.2 percent in the prior month and in line with consensus. 

The harmonized index of consumer prices (HICP) rose 0.7 percent from a year earlier, the same pace as in October. On a month-on-month basis, the index remained unchanged, following a 0.2 percent rise in the preceding month and in line with market expectations.


Friday December 09 2016
German Trade Surplus Narrows to 9-Month Low in October
Destatis l Rida Husna | rida@tradingeconomics.com

Germany posted a EUR 19.3 billion trade surplus in October of 2016, down from EUR 22.2 billion reported a year earlier. It was the smallest trade surplus since January, as exports fell more than import.

In October, sales declined 4.1 percent year-on-year to EUR 101.5 billion while imports decreased by 2.2 percent to EUR 82.2 billion. 

Germany exported goods to the value of EUR 59.7 billion (-4.5 percent year-on-year) to the Member States of the European Union, while it imported goods to the value of EUR 54.2 billion (-1.9 percent) from those countries. Goods to the value of EUR 37.4 billion (-4.1 percent) were dispatched to the Euro Area countries while the value of the goods received from those countries was EUR 36.4 billion (-2.6 percent). Sales to EU countries not belonging to the Euro Area decreased by 5.4 percent to EUR 22.3 billion while the value of the goods which arrived from those countries was EUR 17.8 billion (-0.5 percent). Exports to countries outside the European Union amounted to  EUR 41.8 billion in September 2016 (-3.4 percent), while imports from those countries totaled EUR 28.0 billion (-2.7 percent). 

In September 2016, trade surplus was marginally revised to EUR 24.2  billion. 

On a seasonally adjusted basis, exports rose 0.5 percent while imports went up 1.3 percent from the previous month.


Wednesday November 30 2016
Germany Unemployment Rate at 35-Year Low of 4.1%
Destatis | Joana Taborda | joana.taborda@tradingeconomics.com

German seasonally adjusted harmonised jobless rate was recorded at 4.1 percent in October of 2016, down from an upwardly revised 4.2 percent in September and the lowest since since February of 1981. The number of unemployed fell 1.1 percent and employment rose 0.2 percent.

Compared with the previous month, the number of unemployed persons declined by 1.1 percent to 1.78 million from 1.8 million and employment edged up 0.2 percent to 41.47 million from 41.38 million.

Compared with a year earlier, unemployment fell by 5.3 percent from 1.88 million people while employment rose 3.1 percent from 40.22 million people.

Youth unemployment rate was steady at 6.9 percent, the same as in the previous month and the lowest level in 24 years. A year earlier, unemployment among those aged under 25 years was higher at 7.2 percent.  

Separate data from the Labour Office showed the number of jobless persons fell by 5 thousand in November and the unemployment rate was steady at 6 percent.


Tuesday November 29 2016
German Inflation Rate Unchanged at 2-Year High
Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com

German consumer prices are expected to increase by 0.8 percent in the year to November 2016, the same as in the previous month and in line with market expectations. Inflation rate stood at its highest level since October 2014, as cost of food rose firmly while prices of services went up at a slower pace and those of energy continued to fall, preliminary estimate showed.

Year-on-year, prices of services are expected to advance 1.1 percent, compared to 1.3 percent growth in the previous month, as cost of rents is expected to go up 1.4 percent, the same as in October. By contrast, prices of goods are expected to rise by 0.5 percent, compared to a 0.4 percent gain in the previous month, as food prices rose 1.2 percent (compared to a flat reading in October) while cost of energy fell further (-2.7 percent from -1.4 percent).

On a monthly basis, consumer prices are expected to rise 0.1 percent, following a 0.2 percent growth in October.

The harmonised index of consumer prices is expected to increase by 0.7 percent from the previous year. However, it is expected to show no change from the previous month.


Thursday November 24 2016
German GDP Growth Confirmed at 0.2% in Q3
Destatis l Rida Husna | rida@tradingeconomics.com

The German economy expanded a seasonally-adjusted 0.2 percent in the third quarter of 2016, slowing from a 0.4 percent expansion in the preceding quarter and matching preliminary estimates. It was the weakest growth since the third quarter 2015, mainly supported by domestic demand while investment stagnated and net trade had a downward effect on growth.

Quarter-on-quarter, private consumption rose 0.6 percent, compared to a 0.5 percent growth in the June quarter. Public consumption advanced by 1.0 percent, slowing from a 1.2 percent increase in the previous three months. Overall consumption contributed 0.4 percentage points to growth. Gross fixed capital formation remained unchanged, following a 1.6 percent decline in the previous quarter. Investment in machinery and equipment dropped by 0.6 percent (after a 2.3 percent drop in the second quarter). In contrast, construction investment rose 0.3 percent (from -1.9 percent). Investment in other products also grew by 0.6percent, slowing slightly from a 0.7 percent rise in the previous three months. Exports declined by 0.4 percent, compared to a 1.2 percent growth in the June quarter. Imports went up 0.2 percent, faster than a 0.1 percent growth in the previous three months. That brought a downward effect to the GDP (-0.3 percentage points). Inventories showed no contribution to growth.

Year-on-year, the GDP advanced 1.5 percent, compared to a 3.1 percent growth in the previous three months and below an earlier projection of 1.7 percent expansion. Household final consumption rose 1.5 percent, slower than a 2.7 percent growth in the previous quarter. Government consumption expanded 4.5 percent, up from a 4.3 percent expansion in the June quarter. Overall consumption contributed 1.7 percentage points to growth. Gross fixed capital formation also grew 1.3 percent (after a 4.4 percent expansion in the preceding quarter). Investment in other products rose the most by 2.7 percent, followed by construction (+2.0 percent). In contrast, machinery and equipment investment fell 0.6 percent. Overall investment added 0.3 percentage points to growth. The reduction in inventories slowed down the GDP growth by 0.1 percentage points. The balance of exports and imports substracted 0.3 percentage points to the year-on-year GDP growth. 




Tuesday November 15 2016
German GDP Growth Weakest in A Year in Q3
Destatis l Rida Husna | rida@tradingeconomics.com

The German economy expanded a seasonally-adjusted 0.2 percent in the September quarter of 2016, compared to a 0.4 percent growth in the second quarter while market expected a 0.3 percent expansion, preliminary estimates showed. It was the weakest growth since the third quarter 2015, as positive contributions mainly came from domestic demand while foreign trade had a downward effect on growth.

In the three months to September,  final consumption expenditure of both households and government continued to increase. Meanwhile, fixed capital formation in machinery and equipment was somewhat lower and in construction was somewhat higher than in the previous quarter. Exports were slightly down while imports were slightly up compared with the second quarter.

The economic performance in the third quarter was achieved by 43.7 million persons in employment in the domestic territory, which was an increase of 388,000 or 0.9 increase on a year earlier.

Year-on-year, the GDP advanced 1.5 percent, much slower than a 3.1 percent growth in the previous three months and below consensus of a 1.8 percent expansion.