German Consumers Keep Hands in Pockets

01 May 2007

WIESBADEN, Germany: Retail sales in Europe's biggest economy slipped in March following the hike in value added tax introduced at the start of the year. Latest figures from the Federal Statistics Office show sales fell 0.7% from February, when they rose one percent.

Comments Frankfurt-based economist Sylvain Broyer: "Whatever people spent ahead of the [tax] increase is missing from the economy this year, even though we are confident that consumers' purchasing power overall will increase."

Data sourced from (Germany); additional content by WARC staff