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No Change In German Unemployment

James Boston
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No Change In German Unemployment

The German Statistics Office has just released the headline Unemployment data for the economy for the month of July. The official unemployment rate still stands at 6.7% on a seasonally adjusted basis, this is in line with the June reading of 6.7%, markets had not anticipated any change to this level. The Unemployment Change metric for the month is showing a reduction of –12k unemployed individuals, this is in comparison to a rise of 9k in June, the anticipated change this month was for a further fall of -5k in the economy.

Earlier this morning the German Statistics Office also published an update to the country’s Retail Sales measurement. The year on year number is showing just a 0.4% increase in sales to the month of June, this is in comparison to the 2.4% experienced in May and also misses the market expected level of a 0.8% increase. The good news in this figure however is the fact that the May number has been revised up from 1.9% to the 2.4% we are seeing today. The month on month reading for Retail Sales is however higher at 1.3% growth compared to a contraction of -0.2% in May, the market expectation was for a rise of just 1.0% in the month of June.

Despite a fall in business sentiment and outlook in Germany recently, particularly in light of the Ukrainian crises and a general slowing in global demand, consumer expectations remain optimistic. The Consumer Confidence figures are rising, the recent Gfk number recorded the highest reading since before the crises, and this is translating into strength in the retail sector. The sectors that have particularly contributed to the growth in robustness in retail sales include, Internet and direct mail selling which is up 6.6% on an annual basis, food, beverages and tobacco sales picked up by 1.9%, while sales of pharmaceutical, medical and cosmetics products were up 5.0%.

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