Wednesday February 14 2018
German January Inflation Rate Confirmed at 1.6%
Destatis l Rida Husna | rida@tradingeconomics.com

The German consumer price inflation was confirmed at a three-month low of 1.6 percent year-on-year in January 2018, compared with 1.7 percent in the previous month.

Year-on-year, prices of goods rose by 1.5 percent, compared with 1.8 percent in the preceding month, as energy prices went up at a softer pace while food inflation was steady. Prices also increased for newspapers and periodicals (5.1 percent) and tobacco products (4.5 percent), while cost fell for information processing equipment (-2 percent), consumer electronics (-1.4 percent) and clothing (-0.9 percent). 

Energy prices were up 0.9 percent in January, after a 1.3 percent rise a month earlier. Prices increased mainly for heating oil (5.5 percent), electricity (1.6 percent) and charges for central and district heating (1.5 percent). In contrast, consumers paid less for gas (-1.3 percent) and motor fuels (-0.5 percent).

Food inflation was unchanged at 2.9 percent. Price increases were observed for edible fats and oils (15.2 percent), dairy products (10.3 percent) and fruit (8.3 percent). On the other hand, vegetable prices were markedly down (-5.7 percent).

Services inflation was flat at 1.6 percent, with prices rising for: net rents exclusive of heating expenses (1.7 percent); maintenance and repair of vehicles (4.0 percent); in-patient health services (2.5 percent); and catering services (2.1 percent). Meantime, consumers paid less for  telecommunication services (-0.8 percent).

On a monthly basis, the consumer price index declined by 0.7 percent, after a 0.6 percent gain in December. Prices declined for: package holidays (-22.2 percent); air tickets (-5.0 percent); clothing (-7.3 percent) and footwear (-3.3 percent). By contrast, cost rose for energy (0.4 percent) and food (0.8 percent).

The harmonised index of consumer prices rose by 1.4 percent from the previous year, but declined by 1 percent month-over-month.




Wednesday February 14 2018
German Q4 GDP Growth Weaker than Expected
Destatis l Rida Husna | rida@tradingeconomics.com

The German economy expanded a seasonally-adjusted 0.6 percent on quarter in the three months to December of 2017, after a downwardly revised 0.7 percent growth in the previous period and below market expectations of 0.8 percent, the preliminary estimate showed.

The October-December expansion marked the 14th straight quarter of growth.

Compared with the third quarter, positive contributions to GDP growth came mainly from foreign demand. At the same time, government spending continued to increase while household consumption remained roughly at the previous quarter's level. Gross fixed capital formation in machinery and equipment was slightly up on the previous quarter, while investment in construction was slightly down.

Year-on-year, the economy expanded a calendar-adjusted 2.9 percent, following a downwardly revised 2.7 percent growth in the previous period. It was the strongest pace of expansion since the third quarter of 2011. Meantime, unadjusted data showed the economy advanced 2.3 percent on the year, following a 2.2 percent expansion in the previous period.

Considering 2017 as a whole, the economy grew by 2.5 percent on a calendar-adjusted basis (vs 1.9 percent in 2016) and by 2.2 percent on a price-adjusted basis (vs 1.9 percent in 2016).





Thursday February 08 2018
German Trade Surplus Narrows Slightly in December
Destatis l Rida Husna | rida@tradingeconomics.com

The German trade surplus fell slightly to EUR 18.2 billion in December 2017 from EUR 18.3 billion in the same month a year earlier.

Exports rose 3.9 percent year-on-year to EUR 100.9 billion in December. Sales to the EU grew by 7.8 percent to EUR 58.0 billion, of which Euro area countries (8.7 percent to EUR 37.2 billion) and other European countries (6.3 percent to EUR 20.8 billion). Meanwhile, exports to countries outside the EU declined by 0.9 percent to EUR 42.9 billion.

Imports increased at a faster 5 percent to EUR 82.7 billion. Purchases from the EU rose 6.4 percent to EUR 55.0 billion, of which Euro area countries (6.1 percent to EUR 37.4 billion) and other European countries (7.2 percent to EUR 17.6 billion). Also, inbound shipments from countries outside the EU increased by 2.3 percent to EUR 27.7 billion.

In 2017, Germany's trade surplus went down to EUR 244.9 billion from its record-high of EUR 248.9 billion reached in the previous year. It was the first decline since 2009.

On a seasonally adjusted basis, the trade surplus fell to EUR 21.4 billion from EUR 22.3 billion in November and below market expectations of EUR 21.7 billion. Imports jumped 1.4 percent from the previous month and exports rose at a slower 0.3 percent.




Wednesday January 31 2018
German Jobless Rate Drops to 37-Year Low
Destatis l Rida Husna | rida@tradingeconomics.com

German seasonally adjusted harmonised unemployment rate fell slightly to 3.6 percent in December 2017 from an upwardly revised 3.7 percent in the previous month. It was the lowest jobless rate since October 1980.

Compared with the previous month, the number of unemployed persons declined by 0.6 percent to 1.58 million from 1.59 million, while employment was almost unchanged at 41.86 million people.

Compared with December 2016, unemployment dropped by 6.0 percent from 1.68 million people while employment rose 1.4 percent from 41.27 million people.

Youth unemployment rate came in at 6.6 percent, the same as in the previous month and compared with 6.8 percent a year earlier. 

Separate data from the Labour Office showed the number of unemployed persons fell by 25 thousand to 2.415 million in January 2018. The adjusted unemployment rate fell to 5.4 percent, the lowest level since German reunification in 1990.




Tuesday January 30 2018
German January Inflation Rate Weaker than Expected
Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com

German consumer price inflation is expected to ease to a three-month low of 1.6 percent year-on-year in January 2018 from 1.7 percent in the previous month and below market consensus of 1.7 percent.

Year-on-year, prices of goods are expected to advance by 1.5 percent, compared to a 1.8 percent gain in the previous month, as cost of energy is set to rise by 0.9 percent from the previous year after an increase of 1.3 percent in December. Food prices are expected to grow by 3.1 percent, compared to 3 percent in the previous month. Meanwhile, services price inflation is likely to remain unchanged at 1.6 percent, with cost of rents advancing by 1.7 percent, the same as in December.

On a monthly basis, consumer prices are expected to fall by 0.7 percent after a 0.6 percent gain in December, and below forecasts of a 0.6 percent drop.

The harmonised index of consumer prices is expected to rise by 1.4 percent from the previous year and decline by 1 percent from the previous month.


Tuesday January 16 2018
German December Inflation Rate Confirmed at 1.7%
Destatis l Rida Husna | rida@tradingeconomics.com

German consumer price inflation stood at 1.7 percent year-on-year in December 2017, unrevised from the preliminary estimate and compared to 1.8 percent in the previous month. Energy inflation eased while cost of food and services rose at a faster pace.

Year-on-year, prices of goods increased by 1.8 percent, slowing from a 2.1 percent rise in the preceding month, as energy prices went up at a softer pace while cost of food grew further. Prices also increased for newspapers and periodicals (5.1 percent), tobacco products (4.6 percent), and pharmaceuticals products (2.6 percent). Meanwhile, cost of consumer electronics fell 1.1 percent. 

Energy prices were up 1.3 percent, compared to a 3.7 percent rise in a month earlier. Prices increased mainly for heating oil (4.0 percent) and electricity (2 percent), while consumers paid less for gas (-2.6 percent).

Food and non-alcoholic beverages prices went up by 2.9 percent, compared to a 2.8 percent increase in November. Price increases were observed for most food product groups, especially for edible fats and oils (16.6 percent), dairy products (10.1 percent) and fruit (7.6 percent). Vegetable prices were markedly down (-6.1 percent).

Services inflation edged up to 1.6 percent from 1.5 percent in November, mainly the result of the development of net rents exclusive of heating expenses (1.7 percent). Upward pressure also came from: package holidays (4.2 percent); maintenance and repair of vehicles (3.8 percent); and in-patient health services (3.5 percent). Meantime, consumers paid less for insurance services for transportation (-9 percent) and services of social facilities (-7.6 percent).

On a monthly basis, the consumer price index rose markedly by 0.6 percent in December, after a 0.3 percent gain in November. Prices rose for: package holidays (20.1 percent); air tickets (4.7 percent); rail fares (2.1 percent); and food (0.8 percent). By contrast, cost fell for energy (-0.1 percent), clothing (-2 percent) and footwear (-1 percent).

The harmonised index of consumer prices rose by 1.6 percent from the previous year and by 0.8 percent month-over-month.

Considering 2017, the inflation rate surged to 1.8 percent, compared to 0.5 percent in 2016
mostly boosted by a recovery in cost of energy (3.1 percent vs -5.4 percent in 2016). Also, food prices rose 3 percent (vs 0.8 percent in 2016) and services advanced 1.4 percent (vs 1.3 percent).



Tuesday January 09 2018
German Trade Surplus Widens in November
Destatis l Rida Husna | rida@tradingeconomics.com

The German trade surplus increased to EUR 23.7 billion in November 2017 from EUR 22.0 billion in the same month a year earlier, as exports rose by 8.2 percent to EUR 116.5 billion and imports grew by 8.3 percent to EUR 92.8 billion.

In November, exports to the EU grew by 8.0 percent to EUR 67.9 billion, of which Euro area countries (9.1 percent to EUR 43.0 billion) and other European countries (6.2 percent to EUR 24.9 billion). Also, sales to countries outside the EU went up by 8.4 percent to EUR 48.5 billion.

Imports from the EU rose 9.5 percent to EUR 62.1 billion, of which Euro area countries (9.5 percent to EUR 41.3 billion) and other European countries (9.6 percent to EUR 20.8 billion). In addition, inbound shipments from countries outside the EU increased by 5.9 percent to EUR 30.7 billion.

Considering January to November, the trade surplus narrowed to EUR 226.8 billion from EUR 230.6 billion in the same period of 2016.

On a seasonally adjusted basis, the trade surplus widened to EUR 22.3 billion from EUR 19.9 billion in October and above estimates of EUR 20.9 billion, as exports jumped 4.1 percent and imports increased at a softer 2.3 percent. 



Wednesday January 03 2018
German Jobless Rate Falls to 37-Year Low
Destatis l Rida Husna | rida@tradingeconomics.com

German seasonally adjusted harmonised unemployment rate fell slightly to 3.6 percent in November 2017 from an upwardly revised 3.7 percent in the previous month. It was the lowest jobless rate since October 1980, as the number of unemployed declined further while employment was unchanged.

Compared with the previous month, the number of unemployed persons declined by 1.3 percent to 1.57 million from 1.59 million, while employment was unchanged at 41.86 million people.

Compared with November 2016, unemployment dropped by 7.6 percent from 1.70 million people while employment rose 1.5 percent from 41.24 million people.

Youth unemployment rate came in at 6.6 percent, the same as in the previous month and compared with 6.9 percent a year earlier. 

Separate data from the Labour Office showed the number of unemployed persons fell by 29 thousand to 2.442 million in December 2017. The adjusted unemployment rate fell to 5.5 percent, the lowest level since German reunification in 1990.


Friday December 29 2017
German December Inflation Rate Stronger than Expected
Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com

German consumer prices are expected to increase by 1.7 percent year-on-year in December 2017, following a 1.8 percent gain in the previous month and beating market consensus of 1.5 percent. Cost of energy and food rose at a softer pace while services inflation picked up.

Year-on-year, prices of goods are expected to advance by 1.8 percent, compared to a 2.1 percent gain in the previous month, as cost of energy is set to increase by 1.3 percent from the previous year after an increase of 3.7 percent in November; and food inflation is expected to ease to 3 percent from 3.2 percent in the previous month. Meanwhile, prices of services are expected to grow by 1.6 percent, following a 1.5 percent gain in the previous month, with cost of rents advancing by 1.7 percent, the same as in November.

On a monthly basis, consumer prices are expected to increase by 0.6 percent after a 0.3 percent gain in November, also beating forecasts of 0.5 percent.

The harmonised index of consumer prices is expected to rise by 1.6 percent from the previous year and by 0.8 percent from the previous month.


Wednesday December 13 2017
German Inflation Rate Confirmed at 1.8% in November
Destatis l Rida Husna | rida@tradingeconomics.com

German consumer prices rose by 1.8 percent year-on-year in November 2017, following a 1.6 percent rise in the prior month and matching the preliminary estimate. Cost of energy and services rose at a faster pace while food inflation slowed.

Year-on-year, cost of services rose 1.5 percent from a year ago, following a 1.2 percent gain in October. Prices increased mainly for: net rents exclusive of heating expenses (1.7 percent); package holidays (4.9 percent); maintenance and repair of vehicles (3.7 percent); and in-patient health services (3.5 percent). Meantime, consumers paid less for insurance services for transportation (-8.9 percent) and services of social facilities (-7.4 percent) and telecommunication services (-0.6 percent).

Prices of goods increased by 2.1 percent, after a 1.9 percent rise in the preceding month, as prices of energy went up at a faster pace while food inflation slowed. Prices also increased for newspapers and periodicals (4.9 percent); tobacco products (4.6 percent); and pharmaceuticals products (2.6 percent), while cost fell for information processing equipment (-1.9 percent) and consumer electronics (-1.5 percent). 

Energy prices were up 3.7 percent, following a 1.2 percent rise in a month earlier. Prices increased especially for: mineral oil products (7.7 percent), of which heating oil (15.1 percent) and motor fuel (5.9 percent); electricity (2 percent); charges for central and district heating (1 percent); and solid fuels (0.9 percent). Only gas prices declined on a year earlier (-1.4 percent).

Food and non-alcoholic beverages prices went up by 2.8 percent, easing from a 3.8 percent increase in the prior month. Prices rose for: edible fats and oils (17.8 percent); dairy products (11.1 percent); fish and fish products (4.0 percent); meat and meat products (3.0 percent) and fruits (4.1 percent). Only the prices of vegetables were down (-3.2 percent).

On a monthly basis, consumer prices rose 0.3 percent, after showing no growth in October. Prices increased for energy (1.3 percent), especially for heating oil (5.2 percent) and motor fuels (2.6 percent). Also, cost of food rose 0.3 percent, particularly for: dairy products (3.4 percent). On the other hand, prices of edible fats and oils declined markedly (-6.0 percent); especially butter (-9.7 percent) and vegetables  (-1.6 percent). A decline was also recorded for cost of clothing and footwear (-0.7 percent) and alcoholic beverages and tobacco (-0.2 percent).

The harmonised index of consumer prices rose 1.8 percent from the previous year, compared to a 1.6 percent rise in October and matching the preliminary estimate. Compared to a month earlier, the index went up 0.3 percent.