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Friday's economic data in Germany suggest that households had a slow start to the year.
Apart from a slew of economic data--see here and here--two important things happened in Germany last week.
Mr. Abe yesterday called a snap general election, to be held on October 22nd; more on this in tomorrow's Monitor. For now, note that the election comes at a reasonably good stage of the economic cycle, hot on the heels of very rapid GDP growth in Q2, while the PMIs indicate that the economy remained healthy in Q3.
Margins for German manufacturing firms remained depressed at the start of the second quarter. The headline PPI rose 0.1% month-to-month in April, pushing the year-over-year rate down marginally to -3.1% from a revised -3.0% in March. Falling energy prices are the key driver of the overall decline in the PPI.
Producer price inflation in the euro area almost surely peaked over the summer.
Chief U.S. Economist Ian Shepherdson named Market Watch forecaster of the month for July
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