German retail sector voices optimism for 2008
The German retailers' association HDE voiced optimism Thursday that sector sales would grow by two percent this year and that price increases would be less steep than in 2007.
By Agencies |
FRANKFURT: The German retailers' association HDE voiced optimism Thursday that sector sales would grow by two percent this year and that price increases would be less steep than in 2007.
"Retailers began the year with moderate optimism," HDE director Stefan Genth told a press conference in the western city of Duesseldorf.
Despite clouds from economic conditions elsewhere, German consumers appeared ready to make more purchases this year, the association said.
"Contrary to the United States or United Kingdom, German consumption does not depend directly on stock market developments," Genth said.
Germans should be encouraged by falling unemployment and salary increases, experts have forecast.
The government has been banking on increased consumption to help the biggest European economy grow as exports are hit by the euro's rise to record heights against the dollar, which makes German products more expensive abroad.
In January, an annualised 2.7 percent increase in retail sales gave officials reason for hope, and "the positive trend continued in February," Genth said.
Consumer spending had slumped in early 2007 after the government raised Germany's value-added tax by three percentage points to 19 percent.
This year, energy and food prices that have posted sharp gains in recent months were expected to level off a bit, though the HDE warned that the cost of food products could remain volatile.
"Retailers began the year with moderate optimism," HDE director Stefan Genth told a press conference in the western city of Duesseldorf.
Despite clouds from economic conditions elsewhere, German consumers appeared ready to make more purchases this year, the association said.
"Contrary to the United States or United Kingdom, German consumption does not depend directly on stock market developments," Genth said.
Germans should be encouraged by falling unemployment and salary increases, experts have forecast.
The government has been banking on increased consumption to help the biggest European economy grow as exports are hit by the euro's rise to record heights against the dollar, which makes German products more expensive abroad.
ADVERTISEMENT
In January, an annualised 2.7 percent increase in retail sales gave officials reason for hope, and "the positive trend continued in February," Genth said.
Consumer spending had slumped in early 2007 after the government raised Germany's value-added tax by three percentage points to 19 percent.
This year, energy and food prices that have posted sharp gains in recent months were expected to level off a bit, though the HDE warned that the cost of food products could remain volatile.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
