Sandra Petcov
Sandra Petcov
books brim business confidence doubt fiscal full german hiring large levels order rise seen since
There's no doubt German firms are doing exceptionally well: order books are full to the brim and business confidence is at levels not seen since reunification. But they haven't started hiring yet. They know that in 2007 a very large fiscal tightening is envisaged, so this could be a short-lived rise in demand.
declining downward employee employment german per rebound retail strong support though
Fundamentals still do not support a strong rebound in German retail sales: real compensation per employee is declining noticeably and, even though unemployment has started to fall, employment is still on a downward trend.