Sunday 22 October 2017

German retail sales rebound in July

Primark, which trades as Penney's in Ireland, has a retail presence across Europe
Primark, which trades as Penney's in Ireland, has a retail presence across Europe

German retail sales rose month-on-month at their strongest pace in nine months in July, reinforcing expectations that private consumption will support growth in Europe's largest economy this year.

The 1.4 percent increase, measured in real terms, was above a Reuters consensus forecast for a rise of 1.0 percent and the biggest monthly increase since October of last year.

Retail sales is a notoriously volatile indicator that is often subject to large revisions. The June reading was revised to a drop of 1.0 percent from an originally reported decline of 2.3 percent.

On a year-on-year basis, retail sales posted their second strong month of strong gains, rising 3.3 percent after a 5.2 percent increase in June. A breakdown showed a robust 9.2 percent rise in internet and mail-order sales.

The robust retail sales figures add to a generally healthy economic picture in Germany, although a slowdown in China has raised questions about whether exports could weaken later this year.

Reuters

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