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☆ Germany's economy shrinks by 0.3% in 2023
▼ + stars: | 2024-01-15 | by ( ) www.cnbc.com time to read: +1 min

German Chancellor, Olaf Scholz arrives for the weekly federal government cabinet meeting on Oct. 11, 2023 in Berlin, Germany. Europe's largest economy contracted by 0.3% year-on-year in 2023, as high inflation and firm interest rates bit into growth, the Federal Statistical Office of Germany said Monday. "The overall economic development in Germany stalled in 2023 in the still crisis-ridden environment," said Ruth Brand, president of the federal statistics office, according to a Google translation. "Despite the recent declines, prices remained high at all levels of the economy. Added to this were unfavorable financing conditions due to rising interest rates and lower demand from home and abroad," Brand added.

Persons: Olaf Scholz, Ruth Brand, Brand Organizations: Federal, Office, Germany, Reuters Locations: Berlin, Germany, Europe's

The inflation rate fell to 2.3% in November. Analysts polled by Reuters had expected inflation to ease to 2.6%. Core inflation, which excludes volatile food and energy prices, fell to 3.8% in November from 4.3% the previous month. "But the inflation rate will fall to below 3% as early as the beginning of next year," Wollmershaeuser said. Economists pay close attention to German inflation data, as Germany publishes its figures one day before the euro zone inflation data release.

Persons: Fabian Bimmer, Timo Wollmershaeuser, Wollmershaeuser, Commerzbank's, Ralph Solveen, Solveen, Bert Colijn, Colijn, Miranda Murray, Maria Martinez, Linda Pasquini, Sharon Singleton, Kirsten Donovan Organizations: REUTERS, Rights, Reuters, Union, European Central Bank, Thomson Locations: Hamburg, Germany, Spanish

A steel worker of ThyssenKrupp stands amid sparks of raw iron coming from a blast furnace at a ThyssenKrupp steel factory in Duisburg, western Germany, November 14, 2022. REUTERS/Wolfgang Rattay/File Photo Acquire Licensing RightsBERLIN, Nov 7 (Reuters) - German industrial production fell more than expected in September, data showed on Tuesday, as a recent slump in incoming orders took its toll on production. There are few figures that summarise the state of the German economy as well as industrial production, Thomas Gitzel, chief economist at VP Bank, said. "The industry-heavy German economy is dependent on production in order to achieve reasonable economic growth rates," he said, noting that industrial production this year has been weak. "Even though there isn’t any hard data for the fourth quarter yet, recent developments have clearly increased the risk that the German economy will end the year in recession," Brzeski said.

Persons: Wolfgang Rattay, Thomas Gitzel, Carsten Brzeski, Brzeski, Maria Martinez, Miranda Murray, Rachel More Organizations: REUTERS, Rights, Reuters, VP Bank, ING, Thomson Locations: ThyssenKrupp, Duisburg, Germany

Looking ahead, the ongoing pass-through of the European Central Bank's monetary policy tightening, still no reversal of the inventory cycle and new geopolitical uncertainties will continue weighing on the German economy, Brzeski said. "The German economy looks set to remain in the twilight zone between minor contraction and stagnation not only this year but also next year," Brzeski said. The contraction in the third quarter is not seen as an outlier as Commerzbank expects the German economy to contract again in the winter half-year. Economists will pay close attention to national inflation data from Germany and Spain, as they are published one day before the euro zone inflation data release. Euro zone inflation is expected to ease to 3.2% in October from 4.3% in September, according to economists polled by Reuters.

Persons: Arnd, Carsten Brzeski, Brzeski, optimists, Joerg Kraemer, Claus Vistesen, Maria Martinez, Miranda Murray, Rachel More, Miral Fahmy, Angus MacSwan Organizations: REUTERS, Rights, Gross, Reuters, ING, European Central, Macroeconomics, Thomson Locations: Konstanz, Germany, Spain

☆ Swiss shift rightwards in vote as immigration fears trump environment
▼ + stars: | 2023-10-23 | by ( ) www.reuters.com time to read: +3 min

The Swiss Parliament Building (Bundeshaus) is pictured in early autumn light in Bern, Switzerland October 11, 2021. The SVP cemented its place as the biggest group in parliament's lower house, increasing its share of the vote to 28.6%, according to data from the Swiss Federal Statistics Office. The SVP also highlighted the expense of the asylum system, while arguing that crime rates were rising because of immigration. Switzerland's second-biggest party, the left-leaning Social Democrats (SP) also slightly increased its share of the vote to 18%. The big loser in the election was the Green Party, whose support fell 3.8 percentage points, losing them five seats.

Persons: Denis Balibouse, Switzerland's, Cedric Wermuth, John Revill, Hugh Lawson Organizations: Swiss, Rights, Swiss People's Party, SVP, Swiss Federal Statistics Office, National Council, Social Democrats, Green Party, pollsters GFS, Thomson Locations: Bern, Switzerland, Ukraine, pollsters, pollsters GFS Bern

REUTERS/Wolfgang Rattay/File Photo Acquire Licensing RightsSummary Industrial output down 0.2% in Aug vs down 0.1% forecastEconomists expect further contraction in coming monthsBERLIN, Oct 9 (Reuters) - German industrial output shrank in August for the fourth consecutive month, the federal statistics office said on Monday, an indication that the sector remains under serious pressure, stoking recession fears. Industrial production fell slightly more than expected in August by 0.2% compared to the previous month. The further drop in German industrial production in August was better than it looked as it was driven by volatile components, said Franziska Palmas, senior Europe economist at Capital Economics. However, she continued to expect high interest rates and falling demand to lead to a further contraction in German industrial output in the coming months. "Thin order books despite last week's increase, and high inventories all indicate that German industrial production will continue moving sideways rather than gaining momentum anytime soon," ING's global head of macro Carsten Brzeski said.

Persons: Wolfgang Rattay, Franziska Palmas, Destatis, Carsten Brzeski, Brzeski, Friederike Heine, Maria Martinez, Ozan Ergenay, Gerry Doyle, Sonali Paul Organizations: REUTERS, Reuters, Capital Economics, Thomson Locations: ThyssenKrupp, Duisburg, Germany, BERLIN, Europe, Palmas

REUTERS/Wolfgang Rattay/File Photo Acquire Licensing RightsBERLIN, Oct 5 (Reuters) - German industrial orders rose more than expected in August due to a strong increase in the manufacture of computer, electronic and optical products sector, data showed On Friday. Orders rose by 3.9% on the previous month on a seasonally and calendar adjusted basis, the federal statistics office said. The statistics office revised the July drop to 11.3% compared with June, from a provisional figure of -11.7%. In August, an increase of 37.9% on the month in the manufacture of computer, electronic and optical products drove the expansion in industrial orders. Foreign orders were up 3.9% on the month and domestic orders rose by 4.0%, the data showed.

Persons: Wolfgang Rattay, Rachel More, Maria Martinez, Kirsti Knolle, Christina Fincher Organizations: REUTERS, Rights, Thomson Locations: Duisburg, Germany

☆ German structural reforms 'are a must,' IMF chief insists
▼ + stars: | 2023-10-05 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: +2 min

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), speaks to the media following talks at the Chancellery on November 29, 2022 in Berlin, Germany. "If you look at the policy decisions Germany is taking, they are around stimulating structural change. And of course, like any other country, structural reforms are a must in this more uncertain world with low gross growth prospects," Georgieva said Wednesday. The auto industry should be a particular focus for reform in Germany if the country wants to increase productivity, according to Georgieva. "For Germany, this is very visible in the need to restructure the automobile sector for this economy of tomorrow," she said.

Persons: Kristalina Georgieva, Carsten Koall, CNBC's Joumanna, Georgieva, Hans, Werner Sinn, Joachim Nagel Organizations: International Monetary Fund, Getty, Ifo Institute, CNBC Locations: Berlin, Germany, Europe, Italy, Ukraine

☆ German inflation falls to lowest level since start of Ukraine war
▼ + stars: | 2023-09-28 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Fabian Bimmer/File Photo Acquire Licensing RightsBERLIN, Sept 28 (Reuters) - German inflation fell in September to its lowest level since Russia launched its full-scale invasion of Ukraine, signalling what could be the beginning of the end for the high inflation that has weighed heavily on Europe's largest economy. Germany's core inflation rate, which excludes volatile items such as food and energy, fell to 4.6% year-on-year from 5.5% in August. Meanwhile, five economic institutes predict Germany's economy will shrink by 0.6% this year, as rising interest rates take their toll on investment and still high inflation depresses consumption. The ECB is keeping a close eye on euro zone inflation data, with September's reading due to be published on Friday. Spain earlier reported a 3.2% harmonised inflation rate for September.

Persons: Fabian Bimmer, Ralph Solveen, ING's Carsten Brzeski, Brzeski, Maria Martinez, Miranda Murray, Friederike Heine, Kirsten Donovan, Alison Williams Organizations: REUTERS, Rights, Union, Reuters, ECB, Central, Thomson Locations: Hamburg, Russia, Ukraine, Spain

☆ German housing prices show sharpest drop since 2000 year over year, statistics office says
▼ + stars: | 2023-09-22 | by ( ) www.reuters.com time to read: +2 min

Residential property prices fell by 9.9% year-on-year, the steepest decline since the start of data collection in 2000, the federal statistics office said. Prices fell by 1.5% on the quarter, with steeper declines in larger cities than in more sparsely populated areas. In cities such as Berlin, Hamburg and Munich, apartment prices fell by 9.8% and single and two-family house prices dropped by 12.6% on the year. Building permits for apartments in Germany declined 31.5% in July from a year earlier, the statistics office disclosed on Monday, as construction prices rose by almost 9% on the year. German housing industry association GdW on Friday sounded the alarm over the situation calling for government support for construction companies.

Persons: GdW, Riham Alkousaa, Klaus Lauer, Kirsti Knolle, Sharon Singleton Organizations: Reuters, Thomson Locations: Berlin, Hamburg, Munich, Germany

☆ German industrial output falls more than expected in July
▼ + stars: | 2023-09-07 | by ( ) www.reuters.com time to read: +2 min

A Continental employee works at a tyre retreating station before the visit of German Chancellor Olaf Scholz, in Hanover, Germany April 17, 2023. REUTERS/Fabian Bimmer/File Photo Acquire Licensing RightsBERLIN, Sept 7 (Reuters) - German industrial production fell by slightly more than expected in July, the federal statistics office said on Thursday, underlining the challenges faced by the sector after a winter downturn in Europe's largest economy. Production fell by 0.8% in July compared to the previous month. In the less volatile three-month comparison, production between May and July was 1.9% lower than the previous three months, the data showed. Jens-Oliver Niklasch of LBBW said Thursday's data underscored "the continued crumbling of the economy" and predicted the third quarter would bring a decline in economic output.

Persons: Olaf Scholz, Fabian Bimmer, Alexander Krueger, Hauck Aushaeuser Lampe, Jens, Oliver Niklasch, LBBW, Friederike Heine, Maria Sheahan, Christina Fincher Organizations: REUTERS, Rights, Reuters, Thomson Locations: Hanover, Germany

☆ European stocks extend losses as economic slowdown jitters weigh
▼ + stars: | 2023-09-06 | by ( ) www.reuters.com time to read: +1 min

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 4, 2023. REUTERS/Staff/File Photo Acquire Licensing RightsSept 6 (Reuters) - European stocks extended losses for a sixth consecutive session on Wednesday as worries about global economic slowdown and higher crude prices spurring inflationary pressures weighed on risk sentiment. The pan-European STOXX 600 index (.STOXX) slipped 0.5% by 0713 GMT, hovering near a one-week low. While oil prices pulled back slightly, government bond yields continued to rise, with the German 10-year yield jumping to two-week highs. Further denting the mood, German industrial orders fell more than expected in July, the federal statistics office said.

Persons: Sruthi Shankar, Sherry Jacob, Phillips Organizations: REUTERS, Staff, Telefonica, Saudi Arabia's STC, Spanish, Thomson Locations: Frankfurt, Germany, Saudi Arabia, Russia, Bengaluru

☆ German industrial orders fall more than expected in July
▼ + stars: | 2023-09-06 | by ( ) www.reuters.com time to read: +2 min

A steel worker of ThyssenKrupp stands amid sparks of raw iron coming from a blast furnace at a ThyssenKrupp steel factory in Duisburg, western Germany, November 14, 2022. REUTERS/Wolfgang Rattay/File Photo Acquire Licensing RightsBERLIN, Sept 6 (Reuters) - German industrial orders fell more than expected in July, pulling back after a sharp gain in the aerospace sector the previous month, the federal statistics office said on Wednesday. Incoming orders fell by 11.7% on the previous month on a seasonally and calendar adjusted basis. A turnaround is not in sight due to the weak global economy and high energy costs." Excluding large-scale orders, industrial orders would have increased by 0.3% in July.

Persons: Wolfgang Rattay, Thomas Gitzel, Alexander Krueger, Hauck Aufhaeuser Lampe, Friederike Heine, Miranda Murray, Maria Sheahan, Raju gopalakrishnan Organizations: REUTERS, Rights, VP Bank Group, Thomson Locations: ThyssenKrupp, Duisburg, Germany

☆ Germany is the 'sick man of Europe' — and it's causing a shift to the right, top economist says
▼ + stars: | 2023-09-04 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: +3 min

The "sick man of Europe" moniker has resurfaced in recent weeks as manufacturing output continues to stutter in the region's largest economy and the country grapples with high energy prices. It "has to do with the automobile industry, which is the heart of the German industry and many things hinge on that," he said. Germany reported a foreign trade deficit for the first time in decades in May 2022, totaling 1 billion euros ($1.03 billion). Plunge in business sentimentSinn said investor doubts about the feasibility of Germany's sustainability goals also play into the description of the country as the "sick man of Europe." Uncertainty about energy prices has likely contributed to a "plunge" in business sentiment, Holger Schmieding, chief economist at Berenberg, wrote in the note.

Persons: Hans, Werner Sinn, Sinn, CNBC's Steve Sedgwick, Thomas Lohnes, Berenberg, Holger Schmieding Organizations: European Central Bank, Getty, Ambrosetti, Berenberg Locations: Germany, Europe, Italy, Ukraine, Frankfurt, Saudi Arabia

☆ German exports fall less-than-expected 0.9% in July
▼ + stars: | 2023-09-04 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Phil Noble/File Photo Acquire Licensing RightsBERLIN, Sept 4 (Reuters) - German exports fell a less-than-expected 0.9% in July from a month earlier as global demand continued to falter, data from the federal statistics office showed on Monday. "Trade is no longer the strong resilient growth driver of the German economy that it used to be, but rather a drag," said Carsten Brzeski, global head of macroeconomics at ING. Imports rose 1.4% on the month, the data showed. German export expectations have deteriorated slightly due to weak foreign demand, an Ifo survey showed in August. "As long as the global economic environment remains weak, German exports will also remain depressed," said Thomas Gitzel, chief economist at VP Bank.

Persons: Phil Noble, Carsten Brzeski, Brzeski, Bastian Hepperle, Hauck Aufhaeuser Lampe, Thomas Gitzel, Maria Martinez, Friederike Heine, Alex Richardson, Christopher Cushing Organizations: REUTERS, Rights, ING . Supply, European Union, VP Bank, Thomson Locations: Hamburg, Germany, China, Hauck

BERLIN, Aug 30 (Reuters) - German inflation fell slightly in August but was still higher than forecast, data showed on Wednesday, as the downward trend since the start of the year slowed. German consumer prices, harmonised to compare with other European Union countries, increased by 6.4% on the year in August, according to preliminary data from the federal statistics office. Analysts polled by Reuters had forecast harmonised annual inflation of 6.3% after a reading of 6.5% in July. Non-harmonised inflation in Germany fell to 6.1% in August from 6.2% the previous month. Germany's core inflation rate, which excludes volatile items such as food and energy, stood at 5.5% in August, unchanged from July.

Persons: Rachel More, Friederike Heine Our Organizations: Union, Reuters, European Central Bank, Thomson Locations: Germany

☆ Germany is struggling to move away from its ‘sick man of Europe’ image
▼ + stars: | 2023-08-24 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: +6 min

Germany was first described with that moniker in 1998 as the country navigated the costly challenges of a post-reunification economy. The issues weighing on Germany's economy can be separated into "two very separate battles," Stefan Kooths, research director for business cycles and growth at the Kiel Institute for World Economy, told CNBC. "It is a different sickness [compared to] 20 years ago," Brzeski told CNBC. Energy obstaclesLike most of Europe, Germany's energy prices have been volatile following Russia's full-scale invasion of Ukraine. "Many Germany-headquartered businesses are doing well globally, but they are struggling with operations in their own country," Siegfried Russwurm, head of the German Industry Federation, told CNBC in June.

Persons: DANIEL ROLAND, aren't, it's, Holger Schmieding, Schmieding, Jasmin Groeschl, Stefan Kooths, Carsten Brzeski, China's, Brzeski, Groeschl, Joerg Kraemer, Kooths, Siegfried Russwurm Organizations: Frankfurt Cathedral, AFP, Getty, International Monetary Fund, Berenberg, CNBC, Europe, Allianz, Kiel Institute, World, ING Research, German Industry Federation Locations: Frankfurt, Germany, Europe, France, China, Kiel, Ukraine

☆ German inflation eases to 6.5% in July
▼ + stars: | 2023-08-08 | by ( ) www.reuters.com time to read: 1 min

A general view of a fruit and vegetable stand on a weekly market in Berlin, Germany, March 14, 2020. REUTERS/Annegret Hilse/File PhotoBERLIN, Aug 8 (Reuters) - German inflation eased in July, the federal statistics office said on Tuesday, confirming preliminary data. German consumer prices, harmonised to compare with other European Union countries, increased by 6.5% on the year in July. This follows a 6.8% increase in June. (This story has been corrected to say inflation eased, not rose, in the headline and in paragraph 1)Reporting by Friederike Heine, Editing by Miranda MurrayOur Standards: The Thomson Reuters Trust Principles.

Persons: Annegret, Friederike Heine, Miranda Murray Organizations: REUTERS, Union, Thomson Locations: Berlin, Germany

But their cheap food, often produced on an industrial scale, has a high environmental price. German agriculture was responsible for 55.5 million metric tonnes of greenhouse emissions last year, roughly 7.4% of the country's emissions. During the "true cost" campaign, which runs until Saturday, customers at Penny's 2,150 branches, will be charged a price for nine products, from yoghurt to sausages and vegan schnitzel, that includes climate, health, soil and water costs. According to figures provided by Penny, organic products had environmental costs of an average of 1.15 euros, while non-organic products that relied on chemicals had an average environmental cost of 1.57 euros. It is unclear, however, whether consumers are prepared to pay more to reduce their environmental impact.

Persons: Read, Penny, Stefan Goergens, Goergens, Holger Meckel, I'm, Riham, Barbara Lewis Organizations: European Union, Reuters, Germany's Greens, Technical University of Nuremberg, University of Greifswald, Thomson Locations: Europe, BERLIN, Spain, Italy, Germany, Frankfurt, Penny's

Summary German inflation falls modestly in JulyStronger declines expected starting in SeptemberCore inflation easesBERLIN, July 28 (Reuters) - German inflation fell in July, resuming the decline since the start of the year that was interrupted the previous month due to the base effects in June's data. Although inflation fell in July, economists called the pace of decline sluggish mainly due to the comparison with last year. By comparison, inflation fell to 5.0% in France and it rose to 2.1% in Spain. Italian and euro zone inflation data is due on Monday. Economists polled by Reuters expect euro zone inflation to fall to 5.2% in July from 5.5% in June.

Persons: Ralph Solveen, Thomas Gitzel, Maria Martinez, Miranda Murray, Rachel More, Sharon Singleton Organizations: Union, Analysts, Reuters, European Central Bank, VP Bank Group, ECB, Thomson Locations: BERLIN, France, Spain, Germany

☆ May retail sales bump in Germany not here to stay - analysts
▼ + stars: | 2023-06-30 | by ( ) www.reuters.com time to read: +1 min

June 30 (Reuters) - German retail sales rose more than expected in May from the previous month, data showed on Friday, though analysts said the surprise rise does not indicate a change in depressed spending. The Federal Statistics Office said retail sales were up 0.4% month-on-month in real terms, beating expectations by analysts polled by Reuters that sales would remain unchanged. Compared with May 2022, sales fell 3.6% in real terms. "Even if May surprised us with an increase in retail sales and April also proved robust, the basic constellation of weak private consumption will change little for the time being," said VP Bank chief economist Thomas Gitzel, who predicted that retail sales will fall again in June compared with the month before. Alexander Krueger, chief economist at Hauck Aufhaeuser Lampe private bank, said consumers were still putting the brakes on spending due to real income losses.

Persons: Thomas Gitzel, Alexander Krueger, Hauck Aufhaeuser Lampe, Rene Wagner, Andrey Sychev, Miranda Murray, Maria Sheahan, Friederike Heine Our Organizations: Federal Statistics Office, Reuters, Bank, Thomson

☆ German industrial orders fall unexpectedly in April
▼ + stars: | 2023-06-06 | by ( ) www.reuters.com time to read: +1 min

June 6 (Reuters) - German industrial orders fell unexpectedly in April, dragged down by large-scale orders, data from the federal statistics office showed on Tuesday. Industrial orders fell by 0.4% on the previous month on a seasonally and calendar adjusted basis. Excluding large-scale orders, there was an increase of 1.4% in April compared to the previous month. Year-on-year, industrial orders were down 9.9% in April. Domestic orders rose by 1.6%, while foreign orders sank by 1.8% on the previous month, the statistics office data showed.

Persons: Holger Schmieding, Schmieding, Franzisca Palmas, Maria Martinez, Anastasiia, Rachel More Organizations: Reuters, Companies, Capital Economics, Thomson Locations: Franzisca, Europe, Berlin, Gdansk

☆ German exports rise unexpectedly in April on China reopening
▼ + stars: | 2023-06-05 | by ( ) www.reuters.com time to read: +2 min

BERLIN, June 5 (Reuters) - German exports rose unexpectedly in April, boosted by deliveries to China following its post-pandemic reopening, but analysts warned that the momentum could be short-lived. German exports increased by 1.2% on the previous month, the federal statistics office said. Exports to China were up 10.1%, while exports to the U.S. were up 4.7% and exports to the European Union rose 4.5%, the office said. The foreign trade balance showed a surplus of 18.4 billion euros ($19.68 billion) in April, up from 14.9 billion euros the previous month. "The temporary push in exports to China will fade with time," ING's global head of macro at ING Carsten Brzeski told Reuters.

Persons: Alexander Krueger, Hauck Aufhaeuser, Claus Vistesen, ING Carsten Brzeski, Holger Schmieding, Klaus Wohlrabe, Rachel More, Maria Martinez, Kirsti Knolle, Gareth Jones Organizations: Reuters, European Union, Macroeconomics, ING, Thomson Locations: BERLIN, China, Hauck Aufhaeuser Lampe, U.S, Ifo

"The German economy remained stuck in the mud at the start of 2023, only barely avoiding recession," Pantheon Macroeconomics' chief eurozone economist Claus Vistesen said. The German economy shrank by a revised 0.5% in the fourth quarter of 2022 compared with the previous three months, reviving fears of a technical recession, defined as two consecutive quarters of contraction. "A gradual recovery is underway, despite a persistently difficult environment," German Economy Minister Robert Habeck said in the presentation of the forecasts. "The recent renaissance in industrial production could very well carry the economy through the second quarter," ING's global head of macro Carsten Brzeski said. "However, we are afraid that looking into the second half of the year, the German economy will continue its flirtation with recession."

[1/5] A general view shows the Neckarwestheim nuclear power plant, as Germany shuts down its last nuclear power plants in Neckarwestheim, Germany, April 14, 2023. Following years of prevaricating, Germany pledged to quit nuclear power definitively after Japan's 2011 Fukushima disaster sent radiation spewing into the air and terrifying the world. Germany's commercial nuclear sector began with the commissioning of the Kahl reactor in 1961: eagerly promoted by politicians but met with scepticism by companies. With the end of the atomic power era, Germany has to find a permanent repository for around 1,900 highly radioactive casks of nuclear waste by 2031. The government also acknowledges that safety issues remain given that neighbours France and Switzerland still depend heavily on nuclear power.

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