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Consumer spending in Germany is basically weak.

Publication: Market Europe
Publication Date: 01-APR-07
Format: Online
Delivery: Immediate Online Access

Article Excerpt
The real story about German retail sales is not the fact that January 2007 sales were down more than expected. The decline is the obvious result of the increase in Germany's Value Added Tax (VAT), which went from 16 percent to 19 percent as of January 1, 2007.

The decline in retail sales is clearly shown in the graph above-both for December 2006 and January 2007.

That the VAT increase is not the real story is underscored by German's recent retail sales...

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