· German retail sales rose by 0.8% in both real and nominal terms (ex autos) in December. The rise still leaves the 3-month nominal growth rate for sales in a mild negative path while in real terms retail sales are flat over three months. In the quarter the annual rate pace for both real and nominal sales is just below 1%. Car sales that had boosted consumer activity due to government incentives to buy a new car and scrap an old one have now left sales week. Auto registration fell by 15.7% in December after falling by 9.8% in November. Auto registrations are now off by 4.7% Yr/Yr

· The trend for the German consumer is still poor. There is a very gradual improvement as the negative growth rates are climbing slowly back toward zero. But at this pace the German consumer is not posed to take the German economy anywhere.