Inflation and high economic uncertainty have dented private spending, an official report indicates.
Retail sales in Germany fell sharply in December in a sign of weakening consumer spending in the country even during the Christmas season, data published by the country’s statistics service Destatis revealed on Tuesday.
Spiraling inflation, a raging energy crisis and expectations of a further slowdown in Europe’s largest economy have eroded consumer activity, sending retail sales down 6.4% year-on-year in December, much worse than the 1.8% anticipated by economists, data showed.
On a monthly basis, retail turnover slumped 5.3%, in contrast to a 1.9% increase in November.
“The downbeat consumer mood had heralded the crash in consumption,” said chief economist at Hauck Aufhaeuser Lampe Privatbank, Alexander Krueger, adding that “the decline is extremely severe, and high inflation has become a consumption killer.”
Online and mail-order sales also recorded a drop of 3.8% compared to the previous month and a 7.2% decrease on an annual basis.
“The sharp drop in retail sales showed that even the solid labor market cannot prevent high inflation and uncertainty from denting private consumption,” said global head of macro at ING, Carsten Brzeski.
Germany’s loss of prosperity over the past year has resulted in weak consumption, VP Bank chief economist Thomas Gitzel explained. He warned that the trend would persist as “there is little change in this core dynamic for the time being.”
He also added that ailing consumption would further weigh on the country’s economic output this quarter.
Image credit: Ingo Joseph
Serves them right.Germany is a gutless servant of their conquerers
The last quarter in the USA (Christmas season), shipping was down. This resulted in a 4% reduction in cardboard box sales. Doesn’t sound like much but 4% is a LOT in this industry!
As the USA have on purpose weakened european economies, through the destruction of nordstream 1 & 2, and that europe is also bled financially on the ukraine front, europe will be soon so impoverished that they won t be able to buy US goods any more. It is in everybody interest that everybody have some wealth. The USA dont seems to understand this principle. Will be soon victim of its own greed.
As for the germans, they just deserve what happens to them. Weaklings kissing the US a**
Yip, I really don’t blame you for what you say. It was Angela Merkel who stood there and said “Let them enter.” Referring to the 6 million refugees.