Producer Price Index News

Germany's Producer Price Index (PPI) for December 2024 showed a month-over-month decline of 0.1%, falling short of expectations of a 0.3% increase and down from a previous rise of 0.5%. Year-over-year, the PPI increased by 0.8%, which also did not meet the forecast of 1.1% but was an improvement from the previous 0.1%. This data reflects ongoing economic challenges, as Germany's economy contracted for the second consecutive year in 2024, with a GDP decline of 0.2% following a 0.3% drop in 2023. The ZEW Economic Sentiment Index for January 2025 also indicated a decrease in investor confidence, dropping to 10.3 from 15.7 in December, while the Current Conditions Index improved slightly to -90.4 from -93.1. These indicators suggest a deepening recession, exacerbated by weak household spending and a sluggish construction sector, alongside heightened political uncertainty linked to the upcoming snap elections and the influence of U.S. economic policies under Donald Trump.