German Economy Expands 0.5%; Home Loans in Spain Drop 42%

Arthi Gupta
24 Nov, 2011
New York City

The German economy expanded 0.5% in the third quarter and business confidence improved unexpectedly in November. Spanish home loans approvals fell in September. Hungarian retail sales eased in September.

[R]1:30 PM Frankfurt – The German economy expanded 0.5% in the third quarter and business confidence improved unexpectedly in November. Spanish home loans approvals fell in September. Hungarian retail sales eased in September.[/R]

German GDP, Business Confidence Improves

The German economy expanded 0.5% in the third quarter after adjusting for seasonality and calendar followed a 0.3% increase in the gross domestic product in the second quarter according to the revised data from the Federal Statistics Office.

The main positive contributor to the GDP growth was domestic demand. Exports rose 2.5% and imports grew 2.6% on a quarterly basis in the second quarter.

Separately, confidence among German businesses increased unexpectedly in November, a key survey showed today.

The Ifo Institute''s business climate index rose to 106.6 from 106.4 in October, the first increase in four months.

Italian Sentiment Up

Italy''s consumer confidence improved notably in November, data released by statistics office Istat showed on Thursday.

The consumer confidence index increased to 96.5 in November from 93.3 in October.

Spain’s Home Loans Drop 42%

Spanish mortgage approvals on dwellings fell in September, data released by statistics office Ine showed on Thursday.

The number of mortgages on residential properties fell 42% from a year ago in September. Also, the average value of mortgages on all properties decreased 10.4% on an annual basis to € 119,889 in September.

Sweden PPI Increases, Sentiment Weakens

Sweden''s producer price index increased 0.3% annually in October, data released by Statistics Sweden showed.

On a monthly basis, producer prices dropped 0.3% in October,

Separately, Sweden''s economic sentiment deteriorated, survey results from the National Institute of Economic Research (NIER) showed.

The economic sentiment index dropped to 94 in November from a revised 94.5 in October.

Hungarian Retail Sales Growth Eases

Hungary''s retail sales rose a calendar adjusted 0.3% from a year ago in September, slower than the 0.4% rise in August, data released by the Central Statistics Office showed.

Retail sales of food, beverages and tobacco rose 1.5% annually, while sales of non-food products dropped 0.6% in September.