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German retailers continue to struggle with falling sales due to high inflation.
According to a report from www.tagesschau.de, German retailers again had lower sales in September. Compared to the previous month, sales fell by 0.7 percent in nominal terms and by 0.8 percent when adjusted for prices. Compared to the previous year, the decline in sales was 0.6 percent in nominal terms and 4.3 percent in real terms. The differences between the nominal and real results reflect the increased retail price level. The high inflation rate is a key reason why consumers are reluctant to consume. The rising prices are unsettling consumers, which means they prefer to remain cautious. This trend stands in the way of an economic recovery. The weak retail sales have also had an impact on the overall economic...
German retailers continue to struggle with falling sales due to high inflation.
According to a report from www.tagesschau.de, German retailers again had lower sales in September. Compared to the previous month, sales fell by 0.7 percent in nominal terms and by 0.8 percent when adjusted for prices. Compared to the previous year, the decline in sales was 0.6 percent in nominal terms and 4.3 percent in real terms. The differences between the nominal and real results reflect the increased retail price level. The high inflation rate is a key reason why consumers are reluctant to consume. The rising prices are unsettling consumers, which means they prefer to remain cautious. This trend stands in the way of an economic recovery. Weak retail sales have also impacted overall economic growth, which contracted 0.1 percent in the third quarter. The outlook for Christmas shopping is also subdued as consumer sentiment does not appear to be recovering. The market research companies GfK and NIM expect the consumer climate indicator to fall to its lowest level in 15 years.
This development could have negative effects on the market and the financial industry. The ongoing decline in retail sales and weaker overall economic growth is affecting investor confidence. This could lead to a decline in investments and a decline in stock prices. In addition, due to the uncertain economic situation, banks and other financial institutions may be more cautious in granting loans, which could have a negative impact on lending and economic growth.
The cautious consumer sentiment also has an impact on certain retail sectors. Companies that rely heavily on Christmas shopping could see a decline in sales. This particularly affects the retail trade in gift items and consumer goods. Companies may be forced to adapt their strategies and use alternative distribution channels to sell their products.
Overall, developments in retail and weak consumption show that the German economy is facing major challenges. How quickly inflation can return to normal and consumer confidence can be restored will be crucial. A possible solution could be targeted monetary policy to combat inflation and regain consumer confidence.
Source: according to a report from www.tagesschau.de
Read the source article at www.tagesschau.de