Friday October 13 2017
German September Inflation Rate Confirmed at 1.8%
Destatis l Rida Husna | rida@tradingeconomics.com

German consumer prices rose by 1.8 percent year-on-year in September 2017, the same pace as in August and in line with the preliminary estimate. Service price inflation was unchanged from the previous month while cost of energy and food rose at a faster pace.

Year-on-year, cost of services went up 1.6 percent from a year ago, the same as in August. Prices rose mainly for: Net rents exclusive of heating expenses (1.7 percent); maintenance and repair of vehicles (3.5 percent); and catering services (2.5 percent). However, consumers paid less for services of social facilities (-7.3 percent) and for telecommunication services (-0.7 percent).

Prices of goods rose 2.2 percent, faster than a 2.0 percent rise in August, as prices of both energy and food increased more than in a month earlier. Prices also increased for newspapers and periodicals (5.2 percent) and tobacco products (4.3 percent).

Energy prices were up 2.7 percent, following a 2.3 percent rise in a month earlier. Prices increased for: Mineral oil products (6.2 percent), of which heating oil (12.9 percent) and motor fuels (4.5 percent); and electricity (2.0 percent). In contrast, gas prices were down by 2.5 percent. 

Food and non-alcoholic beverages prices rose 3.2 percent, following a 2.8 percent increase in the prior month. Prices went up for: edible fats and oils (34.2 percent), in particular butter (70.4 percent); dairy products (15.0 percent); fish and fish products (3.4 percent); and meat and meat products (2.6 percent). Only the prices of vegetables were down (-4.4 percent).

On a monthly basis, consumer prices increased by 0.1 percent, also in line with the flash estimate and following a 0.1 percent rise in August. Considerable month-on-month price increases were recorded for clothing (6.2 percent) and footwear (4.3 percent), due to the changeover to the autumn/winter collection. Also, energy prices increased by 1.2 percent, especially for mineral oil products (2.7 percent) and food prices increased 0.6 percent. Due to the end of the summer holidays in September, considerable month-on-month price decreases were recorded for package holidays (-11.6 percent) and air tickets (6.5 percent).

The harmonised index of consumer prices rose 1.8 percent from the previous year, the same as in a month earlier and matching the preliminary estimate. Compared to a month earlier, the index rose 0.1 percent.




Tuesday October 10 2017
German Trade Surplus Widens Slightly in August
Destatis l Rida Husna | rida@tradingeconomics.com

German trade surplus increased slightly to EUR 20.0 billion in August 2017 from EUR 19.6 billion in the same month a year earlier, as exports rose by 7.2 percent year-on-year to EUR 103.1 billion and imports went up by 8.5 percent to EUR 83.0 billion.

In August, sales to the EU grew by 8.5 percent to EUR 58.6 billion, of which the Euro area countries (10.6 percent to EUR 36.0 billion) and other European countries (5.4 percent to EUR 22.7 billion). Also, sales to countries outside the EU went up 5.6 percent to EUR 44.4 billion.

Imports from the EU rose 10.8 percent to EUR 53.8 billion, of which the Euro area countries (10.4 percent to EUR 35.9 billion) and other European countries (11.4 percent to EUR 17.9 billion). In addition, inbound shipments from countries outside the EU increased by 4.5 percent to EUR 29.2 billion.

Considering January to August 2017, the trade surplus narrowed to EUR 160.7 billion from EUR 167.0 billion in the same period of 2016.

On a seasonally adjusted basis, the trade surplus went up to EUR 21.6 billion from a marginally revised EUR 19.3  billion in July. Exports grew by 3.1 percent, following a 0.2 percent rise in a month earlier and imports were up 1.2 percent, compared to an upwardly revised 2.4 percent growth in July.





Friday September 29 2017
German Jobless Rate Drops to New 37-Year Low
Destatis | Joana Ferreira | joana.ferreira@tradingeconomics.com

German seasonally adjusted harmonised unemployment rate fell to 3.6 percent in August 2017 from 3.7 percent in the previous month. It was the lowest jobless rate since September 1980, as the number of unemployed declined further. A year earlier, unemployment was higher at 4.2 percent.

Compared with the previous month, the number of unemployed persons fell 1.3 percent to 1.57 million from 1.59 million, while employment edged up 0.2 percent to 41.51 million people from 41.43 million.

Compared with August 2016, unemployment dropped 11.8 percent from 1.78 million people while employment rose 0.9 percent from 41.13 million people.

Youth unemployment rate came in at 6.4 percent, unchanged from the previous month and compared with 7 percent a year earlier. 

Separate data from the Labour Office showed the number of unemployed persons fell by 23 thousand to 2.506 million in September 2017. The adjusted unemployment rate was declined to 5.6 percent, the lowest level since German reunification in 1990.




Thursday September 28 2017
German September Inflation Rate Unchanged at 1.8%
Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com

German consumer prices are expected to increase by 1.8 percent year-on-year in September 2017, the same pace as in August and in line with market consensus. Service price inflation was unchanged from the previous month while cost of energy and food rose at a faster pace.

Year-on-year, prices of services are expected to grow by 1.6 percent, the same pace as in August; and cost of rents is expected to advance 1.7 percent, also the same pace as in the previous month. Meanwhile, prices of goods are expected to advance by 2.2 percent, compared to a 2 percent gain in August: Cost of energy is expected to increase by 2.7 percent from the previous year after an increase of 2.3 percent in August and food prices are expected to increase by 3.6 percent, faster than a 3 percent gain in the previous month. 

Compared with August 2017, consumer prices are expected to increase by 0.1 percent, the same pace as in August and matching market expectations.

The harmonised index of consumer prices is expected to rise by 1.8 percent from the previous year, and to remain unchanged from the previous month.


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

German consumer prices rose by 1.8 percent year-on-year in August of 2017, matching the preliminary estimate and following a 1.7 percent gain in the previous month. It was the highest inflation rate since April, as cost of energy and food went up at a faster pace.

Year-on-year, prices of goods rose 2.0 percent, faster than a 1.7 percent rise in July, due to rising prices of energy and food. Prices also rose for newspapers and periodicals, tobacco products and pharmaceutical products.

Energy prices were up 2.3 percent, much faster to a 0.9 percent rise in a month earlier. Prices increased for: mineral oil products (5.2 percent), of which heating oil (10.4 percent) and motor fuels (3.9 percent); and electricity (2.0 percent). In contrast, gas prices were down by 2.9 percent. 

Food and non-alcoholic beverages rose 2.8 percent, following a 2.6 percent increase in the prior month. Prices went up for: edible fats and oils (28.1 percent), especially butter (59.7 percent); fish and fish products (3.3 percent); and meat and meat products (2.6 percent).

Cost of services went up 1.6 percent from a year ago, easing slightly from a 1.7 percent rise in July. Prices rose mainly for: net rents exclusive of heating expenses (1.7 percent); maintenance and repair of vehicles (3.5 percent); in-patient health services (3.5 percent); and catering services (2.4 percent). In contrast, cost fell for: services of social facilities (-7.2 percent), telecommunication services (-0.8 percent) and for pre-primary and primary education services (-0.2 percent).

On a monthly basis, consumer prices increased by 0.1 percent, in line with the flash estimate and following a 0.4 percent rise in July. Prices of energy were up 0.5 percent, of which heating oil (1.9 percent) and motor fuels (0.9 percent). Also, cost of clothing increased by 3.4 percent, because the autumn/winter collection has started to arrive. Also, there was a notable 12.0 percent price increase for animal services due to the modification of the statutory schedule of veterinarians' fees. On the other hand, food prices fell 0.2 percent, mainly due to vegetables (-2.2 percent).

The harmonised index of consumer prices rose 1.8 percent from the previous year, following a 1.5 percent gain in a month earlier and matching the preliminary estimate. Compared to a month earlier, the index rose 0.2 percent.


Friday September 08 2017
German Trade Surplus Widens Slightly in July
Destatis l Rida Husna | rida@tradingeconomics.com

German trade surplus increased slightly to EUR 19.5 billion in July 2017 from EUR 19.1 billion in the same month a year earlier, as exports rose by 8.0 percent year-on-year to EUR 103.7 billion while imports went up 9.4 percent to EUR 84.2 billion.

In July, sales to the EU grew by 6.7 percent to EUR 59.9 billion, of which the Euro area countries (6.9 percent to EUR 37.9 billion) and other European countries (6.4 percent to EUR 21.9 billion). In addition, sales to countries outside the Euro area went up 9.7 percent to EUR 43.8 billion.

Imports from the EU rose 8.4 percent to EUR 55.6 billion, of which the Euro area countries (7.5 percent to EUR 37.9 billion) and other European countries (10.4 percent to EUR 17.6 billion). Meantime, inbound shipments from countries outside the Euro area jumped by 11.5 percent to EUR 28.6 billion.

Considering January to July 2017, the trade surplus was registered at EUR 122.04 billion, down from EUR 148.38 billion in the same period of 2016.

On a seasonally adjusted basis, the trade surplus also came in at EUR 19.5 billion, down from EUR 21.2 billion in June. Exports edged up 0.2 percent, following a downwardly revised 2.7 percent drop in a month earlier and imports were up 2.2 percent, compared to a downwardly revised 4.4 percent decline in June.


Thursday August 31 2017
Germany Jobless Rate Falls to New Low Since 1980
Destatis | Joana Taborda | joana.taborda@tradingeconomics.com

German seasonally adjusted harmonised unemployment rate went down to 3.7 percent in July of 2017 from 3.8 percent in the previous month. It is the lowest jobless rate since October of 1980. A year earlier, unemployment was higher at 4.2 percent.

Compared with the previous month, the number of unemployed persons fell 1.2 percent to 1.59 million from 1.61 million, while employment edged up 0.2 percent to 41.32 million people.

Compared with July 2016, unemployment dropped 11.7 percent from 1.8 million people while employment rose 0.6 percent from 41.09 million people.

Youth unemployment rate came in at 6.5 percent, down from 6.6 percent in June and 7 percent a year earlier. 

Separate data from the Labour Office showed the number of unemployed persons fell by 5 thousand to 2.532 million in August 2017. The adjusted unemployment rate was unchanged at 5.7 percent, the lowest level since German reunification in 1990.


Wednesday August 30 2017
German Inflation Rate Rises to 4-Month High in August
Destatis | Joana Ferreira | joana.ferreira@tradingeconomics.com

German consumer prices are expected to increase by 1.8 percent year-on-year in August 2017, in line with market expectations and following a 1.7 percent gain in the previous month. It was the highest inflation rate since April, due to rising prices of energy and food.

Year-on-year, prices of goods are expected to advance by 2 percent, compared to 1.7 percent gain in July. Cost of energy is expected to increase by 2.3 percent from the previous year after an increase of 0.9 percent in July and food prices are expected to increase by 3 percent, faster than a 2.7 percent gain in the previous month. Meanwhile, prices of services are expected to grow by 1.6 percent (1.7 percent in July); and cost of rents is expected to advance 1.7 percent (1.8 percent in July).

Compared with July 2017, consumer prices are expected to increase by 0.1 percent after rising by 0.4 percent in the previous month and matching market expectations.

The harmonised index of consumer prices is expected to rise by 1.8 percent from the previous year, and by 0.2 percent from the previous month.


Friday August 25 2017
German GDP Growth Confirmed at 0.6% in Q2
Destatis l Rida Husna | rida@tradingeconomics.com

The German economy expanded a seasonally-adjusted 0.6 percent on quarter in the second quarter of 2017, following a 0.7 percent growth in the previous period and matching the preliminary estimate. It marked the 12th straight quarter of expansion, mainly supported by domestic demand and investment while net trade had a downward effect.

From the expenditure side, the positive contribution to GDP came from household consumption (0.4 percentage points), fixed investment (0.2 percentage points) and government spending (0.1 percentage point). Also, changed in inventories added 0.2 percentage points to growth. In contrast, net exports subtracted 0.3 percentage points from growth.

Quarter-on-quarter, private consumption rose 0.8 percent, much faster than a 0.4 percent increase in the preceding quarter. 

Government spending increased by 0.6 percent, after a 0.2 percent rise in Q1.

Gross fixed capital formation went up 1.0 percent, following a 2.7 percent in Q1, as investment growth slowed for all categories: machinery and equipment (1.2 percent from 2.1 percent), construction (0.9 percent from 3.4 percent) and other products (0.9 percent from 2.0 percent). 

Exports rose 0.7 percent (from 1.6 percent in Q1) while imports went up at a much faster 1.7 percent (from 0.4 percent).

Year-on-year, the GDP advanced 2.1 percent, following a  2.0 percent growth in the previous three months. On a non-seasonally adjusted basis the economy grew by 0.8 percent year-on-year (from 3.2 percent in Q1) as private consumption (1.6 percent from 1.8 percent) and government spending (1.5 percent from 1.6 percent) increased at slower paces. In addition, gross  fixed capital formation went up  at a slower 1.5 percent (from 4.8 percent in the March quarter), as investment rose at a slower pace for: construction (2.3 percent from 6.2 percent) and other products (3.4 percent from 3.9 percent). In contrast, investment in machinery and equipment fell 0.7 percent (from 3.3 percent in the preceding quarter). On the other hand, net external demand contributed negatively, as exports went up 1.0 percent while imports advanced at a faster 3.8 percent.




Tuesday August 15 2017
German Q2 GDP Growth Slightly Below Forecasts
Destatis l Rida Husna | rida@tradingeconomics.com

The German economy expanded a seasonally-adjusted 0.6 percent on quarter in the three months to June of 2017, missing market expectations of 0.7 percent and following an upwardly revised 0.7 percent growth in the previous period, the preliminary estimate showed. Positive contributions came from household consumption, fixed investment and government spending while net trade dampened an overall expansion.

The April-June expansion marked a 12th consecutive quarter of growth.

Compared with Q1 2017, final consumption expenditure of both households and general government increased markedly. Also, there was an increase in fixed capital formation in machinery and equipment, in construction and in other fixed assets compared with the previous period. However, the development of foreign trade had a downward effect on growth as the increase in imports was considerably larger than that of exports. 

Year-on-year, the economy expanded a calendar-adjusted 2.1 percent in the second quarter of 2017, beating market expectations of 1.9 percent and following an upwardly revised 2 percent growth in the previous period. It was the strongest pace of expansion since the first quarter of 2014. Meanwhile, unadjusted data showed the economy grew 0.8 percent on the year in the second quarter, easing from a 3.2 percent expansion in the previous period.