German real wages rise 2.3% y-o-y in the second quarter
[BERLIN] German real wages rose by 2.3 per cent on the year in the second quarter, data showed on Thursday, in another positive sign for private consumption which has become the main driver of growth in Europe's biggest economy.
The Federal Statistics Office said nominal wages increased by 2.4 per cent on the year between April and June while consumer prices rose by 0.1 per cent in the second quarter.
The increase was mainly driven by strong wage hikes for workers in the real estate business, transport and logistics sector as well as catering industry.
In 2015, German real wages rose by 2.5 per cent on the year, which was the strongest rate since 1992.
Chancellor Angela Merkel's government introduced a national minimum wage of 8.50 euros (S$12.99) per hour at the beginning of 2015, raising the purchasing power of low-income households.
In addition, favourable economic conditions and a continued upswing have enabled companies and unions to agree on robust pay hikes, also in 2016.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
South Korea’s March factory output falls most in 15 months
Deflation reaches UK stores as non-food prices fall 0.6%
Japan’s March factory output rises 3.8% vs month earlier
Hong Kong vies with US in Bitcoin ETF market after crypto’s revival
More UK companies plan price rises but wage expectations cool: Lloyds
Campaigning EU chief von der Leyen defends record during debate