Retail sales in Germany grew by 2.4% in October

Retail sales in Germany grew by 2.4% MoM in October, according to preliminary data of the statistical office Destatis. The data are adjusted from the calendar, inflation and seasonal effects, while the expectations were for growth of 1%. This was the highest increase since June 2011, but the data, although is notoriously volatile, raise hopes that a prolonged period of lackluster retail sales has come to an end. In nominal dimensions the increase was 2.6%.

On an annual basis, compared to October 2015, German retail sales were down 1.0% in inflation-adjusted terms and by 0.4% in nominal dimensions. However, there was one shopping day less in October this year in comparison with previous year, which might affect the data.

A breakdown of the data suggested that the rise was mainly driven by growth in e-commerce as well as clothing and shoes sales.

In the first nine months of the year the retail sales in the Federal Republic grow by 1.8% in inflation-adjusted terms and by 2% in nominal dimensions compared to the same period of 2015. The Germany’s HDE retail association expects overall nominal sales to grow by 2.5% this year.

The market research group GfK forecast last week that consumer sentiment in Germany would pick up in December. It also confirmed an earlier estimate of a 2% increase in German household consumption this year, in real terms.

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