Recent Updates
- Israel: Average Housing Prices (Q2)
- Japan: NCI Economic Activity Index (Aug)
- US: NAHB/Wells Fargo Housing Market Index (Aug)
- Canada: Wholesale trade, MSIO (June)
- Pakistan: Foreign Currency Deposits and Utilization (JUL)
- more updates...
Economy in Brief
U.S. Empire State Manufacturing Index Plummets in August; Lowest Since May '20
The Empire State Manufacturing Index of General Business Conditions plunged to -31.3 in August...
U.S. Import and Export Prices Fall in July; Deepest Since April 2020
Import prices fell 1.4% m/m (8.8% y/y) in July...
U.S. Housing Affordability Declines Further in June
The NAR Fixed Rate Mortgage Housing Affordability Index fell 3.6% in June...
EMU Output Makes Solid Gain in June
The European Monetary Union posted a 0.7% increase for industrial output in June...
U.S. Producer Prices Fall During July; Core Increase Weakens
The Producer Price Index for Final Demand fell 0.5% during July...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Robert Brusca November 28, 2007
German wholesale sales growth is lagging in new quarter. Real
ex-auto sales remain challenged.
Europe has been spinning out mixed economic signals. While
there has been a lot of angst exhibited over the strong euro, the
German finance minister has embraced the strength and ECB members say a
strong currency is ‘the right sort of problem to have,’ better than the
other one.
In the wake of this strength EMU economic reports have become
uneven. While orders have showed weakness across countries, other
reports have showed some resilience, notably the IFO survey in Germany
and an INSEE morale survey for industry in France. The most recent
German consumer sentiment reading from GFK shows a weaker December is
in store. But there has been no full scale weakening.
German wholesalers fit not the mixed mode. Overall sales are
withering in the new quarter down by 0.1% Q/Q for an annual rate drop
of 0.7% and lower from the year ago three month period by 1.6% in real
terms. Ex autos sales are still eroding. The German VAT tax hike has
wreaked havoc with German retail/wholesale trends so far this year. Now
with the euro soaring, a new challenge is in gear. The strong euro does
not appear to have knocked the wind out of the German economy but it
has been added to list of headwinds that the economy faces. Labor
unrest and possibly more ECB rate hikes, especially in the wake of such
strong ongoing money and loan growth in EMU, also are on that list.
Despite it all German wholesale sales are only moderately weak.
One Month of Quarter Complete | |||
---|---|---|---|
Quarterly showing | |||
%Q/Q | %-Saar | %Q/Yr Ago | |
Nominal | 1.1% | 5.5% | -19.8% |
Real | -0.1% | -0.7% | -1.6 |