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Eurozone Sales Surge, German Industry Rebounds
9 Jan
Summary
- Eurozone retail sales exceeded expectations in November.
- German industrial output and orders showed significant growth.
- Exports to the U.S. have declined due to tariffs.
The Eurozone economy finished the year with modest but stable growth, as evidenced by stronger-than-expected retail sales in November and a rebound in German industry. Retail sales in the bloc rose 0.2% month-on-month, with Germany's performance bolstered by a significant increase in industrial output and orders, indicating that government stimulus measures are beginning to take effect.
Despite these positive signs, the overall economic picture remains subdued, with growth not yet translating into a boom. Inflation is holding steady around 2%, which is favorable for the European Central Bank but unlikely to prompt further interest rate cuts. While domestic demand shows resilience, Germany's crucial export sector continues to struggle, particularly with sales to the United States.
Exports from Germany fell by 2.5% in November, with a substantial 22.9% year-on-year decrease in sales to the U.S. attributed to recent tariffs. This trend contrasts with the positive domestic developments, highlighting the mixed economic landscape as the Eurozone navigates global trade disruptions and adjusts to new economic policies.
