FX Guys

German Retail Sales Tumbled 2.5% in November Sending Recession Signals

Highlights

  • German retail sales tumble by 2.5% in November.
  • The marked decline in consumer spending aligned with expectations of a euro area recession.
  • Eurozone inflation, the US Jobs Report, and the ISM Services PMI are up next.

German Retail Sales Tumble in November

Amidst fears of a euro area recession, German retail sales drew investor interest on Friday. A larger-than-expected fall in consumer spending could ease demand-driven inflationary pressures. The net effect could be a less hawkish ECB rate path. However, a marked decline in consumer spending could also support expectations of a euro area recession.

In November, German retail sales tumbled by 2.5%, reversing a 1.1% increase in October. Economists forecast retail sales to fall by 0.1%. Retail sales were down 2.4% year-over-year. In October, retail…
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