German retail sales fall 2.3 percent in September

29th October 2010, Comments 0 comments

German retail sales fell by 2.3 percent in September from the previous month, data released on Friday by the federal statistics showed, missing market expectations by a wide mark.

The drop was a sign the German recovery might not necessarily spur stronger consumption, and compared a forecast rise of 0.4 percent by analysts polled by Dow Jones Newswires.

In the first nine months of the year, retail sales gained 1.1 percent however from the same period in 2009, when Germany was pulling out of its worst recession in six decades.

The Destatis statistics service said sales of of food, drink and tobacco nonetheless fell by 3.5 percent on an annualised basis in September, while non-food sales gained 3.1 percent.

The data does not include sales of automobiles or petrol.

ING senior economist Carsten Brzeski called the figures a "consumption setback."

Although the retail sales data are notoriously volatile, Brzeski said the "numbers are a clear disappointement, illustrating that the way towards a fully self-sustained recovery is not an easy one."

Germany has rebounded from the recession mainly on the strength of its exports.

© 2010 AFP

0 Comments To This Article