German Retail Sales Rebound To Log Fastest Growth In 9 Months

00:19, 31st August 2015

(RTTNews) - Germany's retail sales rebounded in July to grow at the fastest pace in nine months, signaling that consumer spending boosted economic growth at the start of the third quarter.

Retail sales advanced 1.4 percent on a monthly basis in July, Destatis reported Monday. This was the fastest growth since October 2014, when sales climbed 1.8 percent.

Economists had forecast sales to expand 1.2 percent after they dropped a revised 1 percent in June. Sales were originally estimated to have fallen by 2.3 percent in June.

Meanwhile, annual growth in retail sales eased to 3.3 percent in July from revised 5.2 percent in June. Nonetheless, this was the second consecutive rise in sales and well exceeded the 1.5 percent rise forecast by economists.

Retail sales of food advanced 2.6 percent and non-food sales gained 3.1 percent in July. Internet and mail order sales surged 9.2 percent.

In nominal terms, retail sales gained 1.3 percent from June and 3.1 percent from last year.

In the first seven months of the year, retail trade turnover climbed 2.6 percent from the corresponding period of last year.

In its monthly bulletin, Bundesbank said economic growth will remain strong in the second half of the year, helped by consumer spending and foreign demand.

The largest euro area economy expanded 0.4 percent in the second quarter as a weaker euro underpinned exports.

In the latest GfK monthly survey, the research group said the retail sector that accounts for about one third of private consumption, should make an important contribution to the expected consumer economy. However, the consumer sentiment index fell to 9.9 in September from 10.1 in August.