We continue to hold a relatively positive short-term outlook for
Germany's economy. Our forecasts show that the retail market will also maintain
stable growth throughout 2016. Owing to low oil prices, which we expect to
persist over the coming year, we are expecting greater levels of disposable
incomes for consumers to use in the retail market. Household spending is
expected to climb steadily throughout our forecast period and this will bode
well for non-essential and luxury goods retailers.
Germany's economy remains one of the most resilient in Europe, and
among all developed nations. We are currently forecast 2.01% real GDP growth in
2016 and 1.52% in 2017, up from our projections in the previous quarter. This
robust growth should ensure consumer confidence remains strong in the
short-term and this will provide important growth in spending within the retail
sector. One potential threat to the country's economic growth has emerged due
to the VW diesel scandal, where 40 % of the company's stock value has
disappeared. We believe that this may pose a bigger threat than the Greek debt
crisis if sales fall substantially. Nevertheless, household expenditure is
expected to grow from USD1,717bn to USD2,115bn by 2019.
For
more information on this report, please visit- http://www.marketresearchreports.com/business-monitor-international/germany-retail-report-q1-2016
The US retail sector is continuing its revival, as the economic
recovery is centred around consumption. Lower oil prices, low inflation,
tightening labour market and low interest rates are all fuelling household
spending. Growth is coming from online sales in particular, as e-commerce
continues its explosive trajectory. While interest rates are set to rise, this
will be a gradual process. We therefore expect these trends to continue to play
out, with opportunities across the wide retail sector spectrum.
The recovering economy is having a much larger impact for spending on
non-essentials, which we believe will largely outperform essential goods across
a range of sub-sectors. For example, we have a strong view on spending at
restaurant to grow faster than off-trade food sales. Spending on household goods
such as furniture, will also perform well in the relatively stable housing
market. Sales of new cars also back up this view, with many companies reporting
drastic rise in revenues in the first half of 2015. The availability of credit
and lower levels of household debt are driving this trend towards
non-essentials over essentials. This trend is also being facilitated by a rise
in the number of middle-class and rising overall incomes. Those at the bottom
end of the income spectrum are likely to remain more cautious in the near-term
and essentials will still account for the vast majority of spending in the US
in 2015.
For
more information on this report, please visit- http://www.marketresearchreports.com/business-monitor-international/united-states-retail-report-q1-2016
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