Sunday, October 31, 2010

German retail sales unexpectedly fall

It was surprising news to most German economic observers to find that German retail sales for the month of September had fallen, despite a growing economy and decreasing unemployment. However, some have warned observers not to over-react, as German retail sales are often revised later. What is interesting to me is the implication that this has for German's exports. Germany always operates at high budget surpluses; do retail sales configure into this? Also, if German unemployment is still very low, then does this have implications for the overall productivity of the German economy?

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