German retail sales fall unexpectedly in July

BERLIN, Sept 2 — German retail sales fell unexpectedly on the month in July, data showed today, dashing hopes that household spending in Europe’s largest economy will be powerful enough to drive a strong recovery in the third quarter from the coronavirus shock.

Retail sales were down by 0.9 per cent on the month in real terms after a revised drop of 1.9 per cent in June, data from the Federal Statistics Office showed. A Reuters forecast had predicted a 0.5 per cent increase.

On the year, retail sales rose by 4.2 per cent in real terms after an upwardly revised increase of 6.7 per cent the previous month, the data showed.

Retail sales are a volatile indicator often subject to revision. — Reuters