Industrial sector economic growth continues to rise
The German commercial economy, which encompasses the sectors of industry, construction, trade, and services, experienced a notable recovery in May 2020, as indicated by a new experimental leading indicator. This tool, based on the monthly Value Added Tax (VAT) advance payments, provides a real-time snapshot of the commercial economy's health.
The recovery trend was evident in increasing VAT payments, signaling higher sales and turnover compared to the deep pandemic lows observed in the preceding months of March and April 2020. During these months, strict lockdowns and pandemic restrictions led to a sharp decline in turnover across many sectors, as economic activity came to a near standstill.
However, with the easing of these measures in May 2020, the VAT advance payments reflected a strong rebound as businesses began reopening and economic activity resumed. The Federal Statistical Office (Destatis) announced this nominal turnover increase, which amounted to 3.3 percent month-on-month. This upward recovery compared to the much lower turnover levels in March and April 2020 is a positive sign for the overall economic recovery.
The new experimental leading indicator, calculated from the monthly VAT advance payments, supports this trend. It offers early statements on the turnover development before the official results from the surveys by economic sectors are available. This enables a timely understanding of the economic landscape, providing valuable insights for policymakers and businesses alike.
It's worth noting that the specific search results provided do not include the exact historical turnover trend from 2020. However, this pattern aligns with general pandemic economic patterns observed across leading economic indicators, including VAT advance payments as a turnover proxy. For detailed quantitative data from official German statistics or VAT advance payment figures specifically from 2020, consulting the German Federal Statistical Office (DESTATIS) or the German Ministry of Finance archives would provide exact month-by-month turnover development data during the pandemic.
In conclusion, the improvement in the turnover development of the German commercial economy in May 2020 is a promising step towards economic recovery. As businesses continue to adapt and reopen, and consumer demand returns, the economy is showing signs of resilience in the face of the ongoing pandemic challenges.
Economic and social policy makers can take comfort in the rebound of the German commercial economy as seen in the May 2020 increase in VAT payments, indicating recovery across sectors like industry and finance. Meanwhile, the strong upward trend in turnover aligns with the overall economic recovery, providing valuable insights for policymakers to formulate effective strategies.
