Wednesday June 14 2017
German Inflation Rate Confirmed At 6-Month Low In May
Destatis | Rida Husna | rida@tradingeconomics.com

German consumer prices rose 1.5 percent year-on-year in May of 2017, easing from a 2.0 percent rise in April and matching preliminary estimates. It was the lowest inflation rate since November 2016, as cost of energy and services increased at a slower pace.

Year-on-year, cost of goods as a whole rose 1.8 percent, following a 2.2 percent gain in the prior month, as cost of energy went up much less than in a month earlier while cost of food rose further. 

Energy prices as a whole increased by 2.0 percent in May, much slower than a 5.1 percent rise in April. Prices went up for heating oil (11.7 percent), followed by motor fuels (4.4 percent) and electricity (1.2 percent). In contrast, cost fell for gas (-3.4 percent).  

Excluding the prices of all types of energy, the inflation rate would have been 1.4 percent in May;  excluding the prices of mineral oil products, it would have been 1.3 percent.

Prices of food and non-alcoholic beverages rose 2.3 percent, after a 1.7 percent rise in a month earlier. Prices increased markedly for: edible fats and oils (19.5 percent), fish and fish products (4.0 percent), fruits (1.2 percent), meat and meat products (1.4 percent) and dairy products (10.5 percent). 

Cost of services went up 1.2 percent in May, following a 1.7 percent gain in the prior month. Prices rose mainly for: net rents exclusive of heating expenses (1.8 percent); catering services (1.9 percent), maintenance and repair of vehicles (3.3 percent). In contrast, cost fell for services of social facilities (−6.8 percent) and package holidays (-2.4 percent).

On a monthly basis, consumer prices fell 0.2 percent, compared to a flat reading in the prior month. Prices of energy declined by 1.4 percent, due to  heating oil (–6.5 percent) and motor fuels (–2.6 percent, including supergrade petrol: –2.3 percent, diesel fuel: –3.0 percent). Slight price decreases were also observed for clothing (–0.6 percent) and footwear (–0.4 percent). Food prices remained unchanged on the previous month. Considerable price decreases were observed especially for vegetables (–4.6 percent, including tomatoes: –19.8 percent; cucumbers: –14.2 percent; butterhead lettuce or iceberg salad: –12.4 percent), whereas price rises were recorded, for example, for edible fats and oils (+2.2 percent, including butter: +4.4 percent) and dairy products (+1.1 percent; including UHT milk: +2.5 percent; cream: +2.7 percent).  

The harmonised index of consumer prices rose 1.4 percent from the previous year, faster than a 2.0 percent rise in the previous month and in line with estimates. Compared to a month earlier, the index declined by 0.2 percent.




Friday June 09 2017
German Trade Surplus Smallest In 3 Months
Destatis l Rida Husna | rida@tradingeconomics.com

German trade surplus fell to EUR 18.1 billion in April of 2017 from EUR 25.3 billion in the same month a year earlier. It was the smallest trade surplus since January, as exports declined 2.9 percent year-on-year to EUR 101.0 billion while imports increased 5.4 percent to EUR 83.0 billion.

Sales went down to the EU (-0.5 percent to EUR 60.9 billion); to the Euro Area countries (-0.2 percent to EUR 38.3 billion); to EU countries not belonging to the Euro Area (-1.0 percent to EUR 22.6 billion); and to countries outside the European Union (-6.3 percent to EUR 40.2 billion).

Imports rose from the EU (3.9 percent to EUR 55.0 billion); from the Euro area countries (4.1 percent to EUR 37.1 billion); from EU countries not belonging to the Euro area (3.5 percent to EUR 17.9 billion); and from countries outside the European Union (8.6 percent to EUR 27.9 billion). 

In March 2017, the trade surplus was marginally revised to EUR 25.3 billion.

On a seasonally adjusted basis, the trade surplus came in at EUR 19.8 billion, as exports rose 0.9 percent from the prior month and imports went up 1.2 percent.




Wednesday May 31 2017
German Jobless Rate Flat At Near 36-Year Low
Destatis | Joana Ferreira | joana.ferreira@tradingeconomics.com

German seasonally adjusted harmonised jobless rate came in at 3.9 percent in April 2017, unchanged from the previous month's reading and below 4.2 percent a year earlier. The unemployment rate remained at its lowest level since December 1980.

Compared with the previous month, the number of unemployed persons was unchanged at 1.69 million in April, while employment was steady at 41.55 million people.

Compared with April 2016, unemployment dropped 6.6 percent from 1.81 million people while employment rose 1.4 percent from 40.99 million people.

Youth unemployment rate came in at 6.8 percent, the same as in March and down from 7.1 percent a year earlier.

Separate data from the Labour Office showed the number of unemployed persons fell by 9 thousand to 2.536 million in May 2017. The adjusted unemployment rate fell to 5.7 percent, the lowest level since German reunification in 1990.




Tuesday May 30 2017
German Inflation Rate Slows To 6-Month Low In May
Destatis l Joana Ferreira | joana.ferreira@tradingeconomics.com

German consumer prices are expected to increase by 1.5 percent year-on-year in May 2017, easing from a 2 percent rise in the previous month and missing market consensus of a 1.6 percent gain. It was the lowest inflation rate since November last year, as prices rose at a slower pace for energy and services.

Year-on-year, prices of goods are expected to advance 1.8 percent, compared to 2.2 percent growth in the previous month, as cost of energy is expected to rise by 2 percent (from5.1 percent in April) and food prices by 2.4 percent (from 1.8 percent). Prices of services are expected to grow by 1.2 percent, following a 1.7 percent gain the previous month; and cost of rents is expected to advance 1.8 percent after rising by 1.7 percent in April.

Compared with April 2017, consumer prices are expected to decrease by 0.2 percent, after showing no growth in the previous month and worse than market expectations of a 0.1 percent fall.

The harmonised index of consumer prices is expected to rise by 1.4 percent from the previous year; and drop by 0.2 percent from the previous month.


Tuesday May 23 2017
German GDP Growth Confirmed At 1-Year High In Q1
Destatis l Rida Husna | rida@tradingeconomics.com

The German economy expanded a seasonally-adjusted 0.6 percent in the first quarter of 2017, following a 0.4 percent growth in the previous period and matching the preliminary estimate. It was the strongest rate of expansion since the first quarter of 2016, supported by both domestic and foreign demand.

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

Quarter-on-quarter, exports rose 1.3 percent (1.7 percent in Q4 2016) while imports also went up at a much slower 0.4 percent (2.5 percent in Q4).

Gross fixed capital formation went up 1.7 percent (0.4 percent in Q4), as construction investment increased by 2.3 percent (0.8 percent in Q4), due to mild weather. Also, investment in machinery and equipment grew by 1.2 percent, rebounding from a 0.1 percent fall in the prior quarter, and investment in other products expanded by 0.8 percent, stronger than a 0.3 percent rise in the preceding three months.

Private consumption rose 0.3 percent (0.2 percent in Q4), and government spending advanced 0.4 percent (0.3 percent in Q4). 

Year-on-year, the GDP advanced 1.7 percent, following a 1.8 percent growth in the previous three months. On a non-seasonally adjusted basis the economy grew 2.9 percent year-on-year (1.3 percent in Q4) mainly boosted by a jump in gross fixed capital formation (3.4 percent from -0.4 percent in Q4), as investment rose for construction (4.7 percent from 0.4 percent in Q4), machinery and equipment (2 percent from -2.6 percent in Q4) and other products (2.5 percent, the same as in Q4). Household spending expanded 1.6 percent (the same as in Q4) and government spending rose 1.5 percent (from 2.7 percent in Q4). Also, net external demand contributed positively, as exports went up 6.6 percent while imports advanced at a slower 5.6 percent.





Friday May 12 2017
German Inflation Rate Confirmed At 2% In April
Destatis l Rida Husna | rida@tradingeconomics.com

German consumer prices rose 2 percent year-on-year in April of 2017, following a 1.6 percent rise in March and matching a preliminary estimate. While cost of services went up at a faster pace, food inflation slowed.

Year-on-year, cost of goods as a whole rose 2.2 percent, following a 2.5 percent gain in the prior month, as cost of food rose less than in a month earlier while energy inflation was steady.

Energy prices as a whole increased by 5.1 percent in April, the same as in March. Prices went up for heating oil (30.1 percent), followed by motor fuels (10.6 percent) and electricity (1.1 percent). In contrast, cost fell for gas (-3.4  percent).  

Excluding the prices of all types of energy, the inflation rate would have been 1.7 percent in April; excluding the prices of mineral oil products, it would have been 1.4 percent.

Prices of food and non-alcoholic beverages rose 1.7 percent, after a 2.2 percent rise in a month earlier. Prices increased markedly for: edible fats and oils (15.8 percent, including butter: 34.2 percent), fish and fish products (3.8 percent), fruits (2.5 percent), meat and meat products (1.9 percent) and dairy products (5.0 percent). 

Cost of services went up 1.7 percent in March, faster than a 0.7 percent gain in the prior month. Prices rose mainly for: net rents exclusive of heating expenses (1.7 percent); catering services (1.8 percent) and insurance services (2.3 percent). In contrast, cost fell for services of social facilities (−6.6 percent).

On a monthly basis, consumer prices were flat, following a 0.2 percent rise in March. Prices of food declined 0.3 percent as cost fell for: vegetables (-2.6 percent), confectionery (-0.9 percent), fruits (-0.5 percent) and edible fats and oils (-0.3 percent). Meanwhile, the prices of energy were up 0.9 percent as cost rose for: heating oil (+2.9 percent) and motor fuels (+1.9 percent). Also, cost surged for: air passenger transport (+3.7 percent) and  tobacco products (2.1 percent). Consumers paid less, however, for coffee, tea and cocoa (-1.1 percent) and for gardens, plants and flowers (-0.8 percent).

The harmonised index of consumer prices rose 2 percent from the previous year, faster than a 1.5 percent rise in the previous month and in line with estimates. Compared to a month earlier, the index was flat.


Friday May 12 2017
German GDP Growth Strongest In A Year In Q1
Destatis | Rida Husna | rida@tradingeconomics.com

The German economy expanded a seasonally-adjusted 0.6 percent on quarter in the first three months of 2017, following a 0.4 percent expansion in the previous period while markets expected a 0.7 percent growth, flash estimates showed. It was the strongest expansion since the first quarter 2016, as positive contributions came from both domestic and foreign demand.

In the first quarter of 2017, capital formation increased substantially. Due to mild weather, fixed capital formation, especially in construction as well as in machinery and equipment went up markedly compared with the fourth quarter of 2016. Also, households and general government expenditure rose slightly. In addition, the development of foreign trade was more dynamic and contributed to growth as exports increased more than imports.

The economic performance in the first quarter 2017 was achieved by 43.7 million persons in employment, which was an increase of 638,000 or 1.5 percent from a year earlier. 

Year-on-year, the GDP advanced 1.7 percent, compared to an upwardly revised 1.8 percent growth in the previous three months and matching market consensus. 


Tuesday May 09 2017
German Trade Surplus Narrows Slightly In March
Destatis l Rida Husna | rida@tradingeconomics.com

German trade surplus narrowed slightly to EUR 25.4 billion in March of 2017 from EUR 25.8 billion in the same month a year earlier. Exports rose 10.8 percent year-on-year to a record EUR 118.2 billion and imports went up at a faster 14.7 percent to an all-time high of EUR 92.9 billion.

In March, exports were recorded at EUR 118.2 billion and imports came in at EUR 92.9. These were the highest monthly figures on record for both exports and imports.

Sales went up to the EU countries (8.7 percent to EUR 68.0 billion); followed by those to the Euro area countries (9.2 percent to EUR 42.4 billion); EU countries not belonging to the Euro area (7.8 percent to EUR 25.6 billion); and countries outside the European Union (13.9 percent to EUR 50.3 billion). 

Imports rose to the EU countries (13.5 percent to EUR 61.1 billion); the Euro area countries (12.5 percent to EUR 41.3 billion); EU countries not belonging to the Euro area (15.7 percent to EUR 19.8 billion); and countries outside the European Union (17.1 percent to EUR 31.8 billion).

In February 2017, the trade surplus was marginally revised to EUR 20.0 billion.

On a seasonally adjusted basis, the trade surplus fell to EUR 19.6 billion from EUR 21.2 billion in February, as exports rose 0.4 percent and imports jumped 2.4 percent.


Wednesday May 03 2017
German Unemployment Rate Flat At 36-Year Low
Destatis | Joana Ferreira | joana.ferreira@tradingeconomics.com

German seasonally adjusted harmonised jobless rate came in at 3.9 percent in March 2017, unchanged from the previous month's reading and below 4.3 percent a year earlier. The unemployment rate remained at its lowest level since December 1980.

Compared with the previous month, the number of unemployed persons was unchanged at 1.68 million in March, while employment edged up 0.1 percent to 41.69 million people.

Compared with March 2016, unemployment dropped 7.7 percent from 1.82 million people while employment rose 2 percent from 40.89 million people.

Youth unemployment rate fell to 6.7 percent from 6.8 in February and 7.2 percent a year earlier.

Separate data from the Labour Office showed the number of unemployed persons fell by 15 thousand to 2.543 million in April 2017. The adjusted unemployment rate stood at 5.8 percent, the lowest level since German reunification in 1990.


Thursday April 27 2017
Germany Inflation Rate Accelerates To 2% In April
Destatis l Yekaterina Guchshina | yekaterina@tradingeconomics.com

German consumer prices are expected to increase by 2 percent year-on-year in April 2017, following 1.6 percent rise in the previous month and above market consensus of a 1.9 percent gain. Prices rose at a faster pace for services while slowed for food, the preliminary estimate showed. On a monthly basis, prices were flat.

Year-on-year, prices of services are expected to grow by 1.7 percent, following a 0.7 percent gain the previous month; and cost of rents is expected to advance 1.7 percent, compared to 1.6 percent in March. Meanwhile, prices of goods are expected to advance 2.2 percent, compared to 2.5 percent growth in the previous month, as cost of energy is expected to rise by 5.1 percent (at the same pace as in March) and food prices by 1.8 percent (from 2.3 percent). 

Compared with March 2017, consumer prices are expected to be unchanged, after rising by 0.2 percent in the previous month and above expectations a 0.1 percent drop.

The harmonised index of consumer prices is expected to rise by 2 percent from the previous year and to be flat compared to the previous month.