German Retail Sales Fall by Largest Rate on Record

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German retail sales fell at the largest annual rate since records began in 1994, highlighting the scale of the economic challenges facing the eurozone’s largest economy, the Financial Times reported. Retail sales volumes dropped 8.8 per cent in June compared with the same month last year, data from Destatis, the German office for national statistics, showed on Monday. The plunge in retail sales follows news on Friday that German economic growth stagnated between the first and second quarters, and figures showing that business and consumer confidence is now at its lowest level since the early months of the pandemic. The S&P Global PMI for German manufacturing dropped below the crucial 50 level, which separates an expansion in activity from a contraction, for the first time in two years. Across the region, new orders fell — a sign that conditions are likely to remain tough in the coming months. The biggest risk facing the region is that tensions with Moscow worsen, triggering Russia to reduce — or halt — gas flows to the EU. Economists believe this would trigger a major recession across the bloc.The S&P Global PMI for German manufacturing dropped below the crucial 50 level, which separates an expansion in activity from a contraction, for the first time in two years. Across the region, new orders fell — a sign that conditions are likely to remain tough in the coming months. The biggest risk facing the region is that tensions with Moscow worsen, triggering Russia to reduce — or halt — gas flows to the EU. Economists believe this would trigger a major recession across the bloc. Read more.
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