Facebook Blogging

Edward Hugh has a lively and enjoyable Facebook community where he publishes frequent breaking news economics links and short updates. If you would like to receive these updates on a regular basis and join the debate please invite Edward as a friend by clicking the Facebook link at the top of the right sidebar.

Friday, October 31, 2008

German Retail Sales Fall Again In September

German retail sales fell more than many economists expected in September as the financial crisis continued to discourage people from spending. Sales, adjusted for inflation and seasonal swings, dropped 2.3 percent from August, when they rose 1.9 percent. That's the biggest decline since May 2007.
According to provisional results of the Federal Statistical Office (Destatis), turnover in retail trade in Germany in September 2008 was in nominal terms 4.1% and in real terms 1.2% larger than that in the corresponding month of the previous year. The number of days open for sale was 26 in September 2008 and 25 in September 2007. When adjusted for calendar and seasonal variations (CENSUS-X-12-ARIMA), the September turnover was in nominal terms 2.5% and in real terms 2.3% smaller than that of the preceding month. Compared with the corresponding period of the previous year, retail turnover was in the first nine months 2008 in nominal terms 2.4% larger and in real terms 0.5% smaller.
Federal Statistics Office

And there is almost certainly worse to come, since slaes continued to fall in Germany in October, according to the Markit economics purchasing managers index (out yesterday), although not as rapidly as in September. The monthly sales index rose to 46.7, up from 44.6 in September.

The German government recently slashed its growth forecast for next year to just 0.2 percent. Last year, the economy expanded 2.5 percent. Merkel said this week her government will announce a package of "targeted, bold and sustainable'' measures in an attempt to boost the now severely flagging economy.

No comments: