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.


Friday November 11 2016
German Inflation Rate Confirmed at 2-Year High in October
Destatis l Rida Husna | rida@tradingeconomics.com

Consumer prices in Germany rose 0.8 percent year-on-year in October of 2016, compared to a 0.7 percent increase in September and matching preliminary estimates. It was the highest inflation rate since October 2014, as cost of services rose further while energy prices fell at a slower pace.

Year-on-year, energy cost (total) decreased by 1.4 percent, following a 3.6 percent drop in September. Prices were down for: central and distric heating (-7.5 percent), gas (-3.9 percent) and heating oil (-1.4 percent). In contrast, cost of motor fuels rose 0.4 percent. 

Cost of food and non-alcoholic beverages went up 0.3 percent, after gaining 0.5 percent in the previous month. Prices increased for edible fats and oils (+12.2 percent, including butter: +21.7 percent, and olive oil: +11.0 percent, fruit: +2.6  percent) and fish and fish products (+3.8 percent). In contrast, price fell for dairy products (-6.3 percent), including curd: -18.2 percent; cream: -15.5 percent, UHT milk: -15.1 percent and vegetables: -63.6 percent). 

Cost of goods as a whole rose 0.4 percent, following a 0.1 percent drop in the preceding month. Cost of services rose 1.3 percent in  October, the same as in the previous two months. Among goods, higher prices were recorded for pharmaceutical products (+2.3 percent), tobacco products (+3.1 percent) and newspapers and periodicals (+4.0 percent). In contrast, cost declined for consumer electronic (-3.4 percent). Among services, cost went up for: net rents exclusive of heating expenses (+1.4 percent), social facilities (+4.4 percent) and insurance services (+3.1 percent). In contrast, cost dropped for package holidays (-1.6 percent) and telecommunication services (-1.4 percent).

On a monthly basis, price of consumer went up 0.2 percent, after gaining 0.1 percent d in the prior month. It was the highest figure in three months and in line with consensus. Price rose for energy (+1.5 percent, especially heating oil: +11.2 percent and motor fuels: +2.4 percent) and clothing (+0.2 percent). In contrast, cost of holiday packages declined by 3.4 percent. Prices of food nearly remained unchanged (edible fats and oils: +6.7 percent and vegetables: -2.3 percent). 

The harmonized index of consumer prices (HICP) rose 0.7 percent from a year earlier, compared to a 0.5 percent increase in September. On a month-on-month basis, the index was rose 0.2 percent, compared to a flat reading in the preceding month and in line with market expectations.


Tuesday November 08 2016
German Trade Surplus Largest in 3 Months
Destatis l Rida Husna | rida@tradingeconomics.com

Germany posted a EUR 24.4 billion trade surplus in September of 2016, up from EUR 22.3 billion reported a year earlier. It was the largest surplus since June, as exports rose while import fell.

In September, sales went up 0.9 percent from a year earlier to EUR 106.4 billion while imports dropped by 1.4 percent to EUR 82.0 billion.

Germany exported goods to the value of EUR 63.4 billion (+2.3 percent year-on-year) to the Member States of the European Union, while it imported goods to the value of EUR 55.2 billion (-0.3 percent) from those countries. Goods to the value of EUR 39.5 billion (+2.3 percent) were dispatched to the Euro Area countries while the value of the goods received from those countries was EUR 37.0 billion (-2.2 percent). Sales to EU countries not belonging to the Euro Area increased by 2.2 percent to EUR 24.0 billion while the value of the goods which arrived from those countries was EUR 18.3 billion (+3.8 percent). Exports to countries outside the European Union amounted to  EUR 43.0 billion in September 2016 (-1.0 percent), while imports from those countries totaled EUR 26.8 billion (-3.6 percent). 

In August 2016, trade surplus stood at EUR 20.0 billion.

On a seasonally adjusted basis, exports declined by 0.7 percent in September while imports dropped by 0.5 percent from the previous month.




Wednesday November 02 2016
Germany Unemployment Rate at Fresh 35-Year Low
Destatis | Joana Taborda | joana.taborda@tradingeconomics.com

German seasonally adjusted harmonised jobless rate was recorded at 4.1 percent in September of 2016, unchanged from a downwardly revised 4.1 percent in August and compared to 4.5 percent a year earlier. The unemployment rate hit a fresh low since February of 1981, as 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 to 1.65 million from 1.8 million in August and employment edged up 0.2 percent to 41.81 million from 41.42 million.

Compared with a year earlier, unemployment fell by 6.8 percent from 1.9 million people while employment rose 3 percent from 40.12 million people.

Youth unemployment rate decreased to 6.8 percent from 6.9 percent in the previous month, the lowest level in 24 years. A year earlier, unemployment among those aged under 25 years was higher at 7.1 percent.  

Separate data from the Labour Office showed the number of jobless persons fell by 13 thousand in October, bringing the unemployment rate down to 6 percent.


Friday October 28 2016
Germany Inflation Rate at 2-Year High of 0.8% in October
Destatis l Yekaterina Guchshina | yekaterina@tradingeconomics.com

Consumer prices in Germany are expected to increase by 0.8 percent on the year in October 2016, following a 0.7 percent growth in the previous month and in line with market expectations. Inflation hit its highest level since October 2014, as cost of services continued to rise while energy prices fell at a slower pace. On a monthly basis, consumer prices went up 0.2 percent.

Year-on-year, prices of services are expected to increase 1.3 percent, the same pace as in September, as cost of rents is expected to go up 1.4 percent. Also, prices of goods are expected to rise by 0.4 percent, compared to a 0.1 percent fall in the previous month, as cost of energy fell 1.4 percent (from -3.6 percent in September) while food prices remained unchanged (from +0.4 percent).

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

The harmonised index of consumer prices is expected to increase by 0.7 percent from the previous year. Compared with September 2016, it is expected to rise 0.2 percent. 


Thursday October 13 2016
German Inflation Rate Confirmed at 0.7% in September
Destatis l Chusnul Ch Manan| chusnul@tradingeconomics.com

Consumer prices in Germany rose 0.7 percent year-on-year in September of 2016, compared to a 0.4 percent increase in August and matching preliminary estimates. It was the highest inflation rate since May 2015 as prices of food and services rose further while cost of energy fell less than in a month earlier .

Year-on-year, energy cost (total) decreased by 3.6 percent, following a 5.9 percent drop in August. Prices were down the most for: heating oil (-12.5 percent), motor fuels (-3.5 percent). Charges also fell for central and district heating (-8.1 percent) and gas (-3.2 percent), and solid fuel (-0.8 percent). In contrast, cost of electricity rose 0.7 percent. 

Cost of food and non-alcoholic beverages went up 0.5 percent, after gaining 0.8 percent in the previous month. Prices increased for edible fats and oils (+6.5 percent, including butter: +12.0 percent, and olive oil: (+9.4 percent), fruit (+3.5 percent), and fish and fish products (+3.1 percent). In contrast, price fell for dairy products (-6.0 percent), including curd: –17.8 percent; UHT milk: –11.7 percent; sliced cheese: –6.9 percent). 

Cost of goods as a whole fell by 0.1 percent, following a 0.6 percent drop in the preceding month. Cost of services rose 1.3 percent in  September, the same as of August. Among goods, lower prices were recorded for energy prices (-3.6 percent) , consumer electronic (-2.9 percent), and clothing (-1.0 percent).  In contast cost rose for cloth for  jewellery, clocks and watches (+2.9 percent), tobacco products (+3.3 percent), and newspapers and periodicals (+3.9 percent).

On a monthly basis, price of consumer went up 0.1 percent, after remaining unchanged in the prior month. Price rise for clothing (+6.6 percent) and footwear (+7.5 percent), energy prices  (+0.7 percent). While food prices remained nearly unchanged (+0.1 percent). In contrast, price decrease for  package holidays (–12.0 percent) and  air tickets (–1.9 percent).

The harmonized index of consumer prices (HICP) rose 0.5 percent from a year earlier, compared to a 0.3 percent increase in July. On a month-on-month basis, the index was flat, following a 0.1 percent fall in the preceding month and in line with consensus.


Monday October 10 2016
German Trade Surplus Widens in August
Destatis l Rida Husna | rida@tradingeconomics.com

Germany posted a EUR 20.0 billion trade surplus in August of 2016, up from EUR 15.22 billion reported a year earlier. The figure was in line with market consensus as exports rose 9.8 percent year-on-year while imports went up 5.3 percent.

In August, the country exported goods to the value of EUR 96.5 billion, while imported goods to the value of EUR 76.5 billion.

Germany exported goods to the value of EUR 54.3 billion (+10.0 percent year-on-year) to the Member States of the European Union, while it imported goods to the value of EUR 48.5 billion (+5.2 percent) from those countries. Goods to the value of EUR 32.6 billion (+8.8 percent) were dispatched to the Euro Area countries while the value of the goods received from those countries was EUR 32.5 billion (+4.1 percent). Sales to EU countries not belonging to the Euro Area increased by 11.8 percent to EUR 21.7 billion while the value of the goods which arrived from those countries was EUR 16.0 billion (+7.5 percent). Exports to countries outside the European Union amounted to  EUR 42.2 billion in August 2016 (+9.6 percent), while imports from those countries totaled EUR 28.0 billion (+5.5 percent). 

In July 2016, trade surplus stood at EUR 19.5 billion.

On a seasonally adjusted basis, exports rose 5.4 percent while imports grew by 3.0 percent from the previous month.