Euro Zone Retail Sales and German Industrial Output Surpass Expectations
The euro zone economy demonstrated resilience in November 2025, with retail sales rising 2.3% year-over-year, surpassing forecasts. German industrial output also exceeded expectations, growing by 0.8% month-over-month, while inflation remained stable at 2%.
Insights:
The euro zone economy has shown surprising resilience at the end of 2025, with November data revealing stronger-than-expected performance in retail sales and German industrial output. Retail sales across the euro zone surged by 2.3% year-over-year, significantly exceeding the 1.6% forecast, while monthly growth stood at 0.2%, ahead of predictions. This uptick is attributed to a major upward revision of October figures, reflecting a robust consumer spending environment.
Germany, the euro zone's largest economy, reported a 0.8% month-over-month increase in industrial output, doubling the anticipated growth rate. This was further bolstered by a 5.6% rise in industrial orders, driven by large-scale contracts, indicating a solid industrial base despite external pressures. However, German exports fell by 2.5% in November, with sales to the United States 
USplummeting 22.9% year-over-year, largely due to ongoing U.S. tariffs on European goods.
USplummeting 22.9% year-over-year, largely due to ongoing U.S. tariffs on European goods.
