Less car purchases in Germany

Private households in Germany spent 1.2% more on consumption in the year 2007. In 2006 growth rate of private consumption was 2.3%. According to the Federal Statistical Office, private consumption without taking into account car purchases by private households increased by 1.8% in the year 2007 (2006: +2.1%). Therefore, the only small increase in private consumption is due to the fact that Germans buy less new cars.

The number of registrations of new cars by private households in the year 2007 fell by 27% as compared to the previous year. In percentage terms this was the sharpest drop since the fall of the iron curtain. One reason for this may be that many people bought a car at the end of 2006 prior to the VAT increase on January 1st 2007. In 2006 the number of new car registrations had increased by 6.7% which had been the biggest growth rate since the beginning of the 1990s.

According to macroeconomic accounting, private households in total spent almost 1.375 trillion Euros in the year 2007 in Germany which is 16,707 Euros on a per capita basis.

Disposable income of private households increased by 1.6% (in 2006: +1.9%). The savings coefficient rose from 10.5% in the year 2006 to 10.9% last year. GERMAN