30 Apr 2015
German labour market remains solid as a rock – ING
FXStreet (Barcelona) - Carsten Brzeski of ING, reviews the German unemployment and retail sales data release, noting that the solid labour market performance remains the showcase model of recovering German economy.
Key Quotes
“German unemployment dropped by a non-seasonally adjusted 88,700 in April, bringing the total number of unemployed to 2.843 million. In seasonally-adjusted terms, unemployment dropped by 8,000, leaving the seasonally-adjusted unemployment rate unchanged at 6.4%.”
“Earlier today, retail sales took an unexpected plunge, dropping by 2.3% MoM in March. However, this drop is probably less exciting than it looks at first glance. Retail sales data are the most volatile monthly data the German economy can offer. Moreover, on the year, retail sales were still up by 3.5% and compared with Q4 they were up by 0.8% in Q1 2015, pointing to solid consumption growth.”
“Record low interest rates, the strong labour market and the high consumption intentions bode all well for domestic demand beyond the first quarter.”
“One day ahead of labour day, the latest German labour market report provided little food for excessive manifestations. Despite some unsolved structural issues (think of female labour market participation, demographic change or the low-wage sector) and still some room for improvement, the extremely solid labour market remains the showcase model of the German recovery.”
Key Quotes
“German unemployment dropped by a non-seasonally adjusted 88,700 in April, bringing the total number of unemployed to 2.843 million. In seasonally-adjusted terms, unemployment dropped by 8,000, leaving the seasonally-adjusted unemployment rate unchanged at 6.4%.”
“Earlier today, retail sales took an unexpected plunge, dropping by 2.3% MoM in March. However, this drop is probably less exciting than it looks at first glance. Retail sales data are the most volatile monthly data the German economy can offer. Moreover, on the year, retail sales were still up by 3.5% and compared with Q4 they were up by 0.8% in Q1 2015, pointing to solid consumption growth.”
“Record low interest rates, the strong labour market and the high consumption intentions bode all well for domestic demand beyond the first quarter.”
“One day ahead of labour day, the latest German labour market report provided little food for excessive manifestations. Despite some unsolved structural issues (think of female labour market participation, demographic change or the low-wage sector) and still some room for improvement, the extremely solid labour market remains the showcase model of the German recovery.”