German Unemployment Unexpectedly Falls in August, Retail Sales Improves
German retail sales rose 0.7% in July after falling 1.3% in the previous month, and the data encourages an improved outlook for future growth as the economy emerges from the its recession in over half a century. Moreover, the annual rate of consumption slipped 1.0% from the previous year amid expectations for a 1.2%, and economic conditions are likely to improve throughout the second-half of the year as Chancellor Angela Merkel’s government takes unprecedented steps to soften the landing of Europe’s largest economy. At the same time, Germany’s unemployment rate held steady at an annual rate of 8.3% in August, with job losses declining 1,000 to 3.46 million, which was well below economic forecast for a 30K rise in unemployment. The data displays prominent signs of recovery but still remains weak as corporations such as Siemens AG will add to its announced 17,000 job cuts while Deutz AG looks to cut approximately 650 jobs.