The German DAX index traded only slightly lower on Tuesday, completely ignoring today’s miserable German data, indicating a very weak state of the economy.
German retail sales crater further
Earlier today, data showed that Germany’s Retail Sales plummeted by 5.3% monthly in December against the 0.2% projected and 1.1% previously. On a yearly change basis, the bloc’s Retail Sales plunged by 6.4% in December versus the -4.3% forecast and a 5.9% decline witnessed in November.
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Furthermore, in the three months leading up to December 2022, the Eurozone economy grew by 0.1%, marginally above the 0% projected and the 0.3% recorded in the previous quarter, according to a preliminary report issued by Eurostat on Tuesday. Annualized, the bloc’s GDP rose by 1.9% in the fourth quarter of 2022, compared to 2.3% in the third quarter. This is in line with predictions of 1.8% growth.
Elsewhere, according to the most recent Bank Lending Survey performed by the European Central Bank (ECB) on Tuesday, higher interest rates are having a significant impact on lending demand. According to the report, banks tightened credit standard heavily in Q4. In corporate credit standards, this was the largest since the 2011 sovereign debt crisis.
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