German labour market likely to remain strong: Societe Generale

Quotes from Societe Generale Cross Asset Research:

-We expect the number of unemployed in Germany to have declined by 10 thousand in February, following a drop of 9 thousand in January. The unemployment rate is expected to remain stable at 6.5%. The labour market is expected to remain strong in the coming months with downside risks mainly stemming from Greece and geopolitical events.

-This year will also be an important year for tracking German wage developments. With current wage negotiations stalling due to very high wage demands (+5%), it looks clear that even with low wage increases of around 2%, real wages will grow significantly.

-This will provide additional support for high consumption growth this year, and we don't exclude the possibility of upside surprises to wage growth in Germany due to the ever tightening labour market.