The trading week kicked off with some bad economic news for Germany as inflation surged more than expected this month and car exports plummeted in the third quarter.
The world’s fourth-largest economy saw its consumer prices surpass the 5% threshold for the first time in nearly three decades in November.
Inflation Rising In Europe
Prices increased an annual 6% under an EU harmonized measure. The inflation rate in the European Union’s strongest economy is far exceeding the ECB’s 2% target.
Earlier in the day, Spain posted an inflation rate of 5.6% with gains fueled by rising food prices. Elsewhere, Belgium soared 5.6%. Euro-area data released on Tuesday is set to show a 4.5% increase.
German Car Exports Plummet
Monday got worse for Germany with the release of Germany’s car export data. The German Federal Statistics Office reported that Germany’s car exports plummeted 17.2% in the third quarter.
The value of German exported cars stood atr 23.1 billion euros whilst imported cars for 11.2 billion euros in the same period. It was the lowest quarterly levels since the second quarter of 2020.
Heaping pressure on German car manufacturers was chip shortages and supply bottlenecks.
The weak economic data saw the German DAX post a steep decline. However, it did manage to hold on to close the day with a 0.16% gain ending the day at 15,280.86. The German stock index rose sharply upon opening, hitting a daily high of 15,415.28m before pulling back on the disappointing data releases.
