With the new orders in the industry a pleasingly positive entry surrendered after three months of decline in October with order growth of 5.2% in the year’s final quarter. However, the demand in a monthly comparison remained tend to be cautious. Building demand weakened last also. Sentiment indicators offer hope hardly on a revival of the development in the next few months. Filed under: Prudential. Given the currently weak development of the German markets are no decisive growth expected by foreign trade. However, reflected the German export economy considerably.
In the third quarter increased the exports of goods and services according to 2.5%. Imports rose also strongly with an increase of 2.6%. As a result, foreign trade made a growth contribution of real 0.1 percentage points in the third quarter. Altogether a quieter development looming but. The private consumption expenditure are a reliable support for the German economy. The retail sales in the strict sense were still expansionary.
In October it increased by 0.7%. The business climate in retailing is although not as positive as in the summer, but it is still above average, and consumer sentiment also brightened up somewhat. The pleasing increase in real disposable income – despite further clamped price climate as provides impetus. The inflation rate fell slightly in November, remained high but with + 2.4%. However, the pressure from import and producer prices eased. Rising wages and salaries, as well as the positive development of employment are decisive factors for the increase in purchasing power. As employment continued to grow, even slower than in the first half of the year (October: seasonally adjusted + 26,000). On the other hand, unemployment went back (November: seasonally adjusted 20,000). The demand for labor remained high, and running forward indicators of labour market does not indicate there is still a turnaround. Testifies the sustained increase of incomes and employment: the German Economy is in good shape and their domestic growth forces are intact.