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German real wages rise 2.3 percent year/year in the second quarter

Published 09/22/2016, 03:02 AM
Updated 09/22/2016, 03:10 AM
© Reuters. People walk through Mall of Berlin shopping centre during its opening night in Berlin

BERLIN (Reuters) - German real wages rose by 2.3 percent 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 percent on the year between April and June while consumer prices rose by 0.1 percent 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 percent on the year, which was the strongest rate since 1992.

Chancellor Angela Merkel's government introduced a national minimum wage of 8.50 euros ($9.54) per hour at the beginning of 2015, raising the purchasing power of low-income households.

In addition, favorable economic conditions and a continued upswing have enabled companies and unions to agree on robust pay hikes, also in 2016.

© Reuters. People walk through Mall of Berlin shopping centre during its opening night in Berlin

($1 = 0.8912 euros)

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