German Retail Sales Rebound Marginally In August

German Retail Sales Rebound Marginally In August


Retail sales in Germany recovered in August following a modest decline in the previous month, reviving expectations that private consumption, one of the main drivers of growth for Eurozone's largest economy, could steer the economy through the turbulence in the rest of the single-currency bloc.
Sales rose 0.3 percent in August from a month earlier when adjusted for seasonal and calendar variations. This was a tad above the 0.2 percent growth expected by economists and follows a 1 percent decline in the previous month.
On an annual basis, retail sales dropped 0.8 percent compared to forecast for a 0.9 percent fall. This marked a second consecutive drop after a 1.6 percent dip in sales in July.
The statistical office said that retail trade of food, beverages and tobacco rose 0.8 percent annually in August. On the other hand, non-food retailing fell 0.4 percent.
The results of a survey by market research group GfK signaled Tuesday that German consumer confidence may remain unchanged in October, while households' expectations about the economy improved.
The survey also showed that the willingness to buy durable goods remained stable, though income expectations continued to be affected by a slight increase in unemployment as well as high fuel prices.
German unemployment increased for the sixth consecutive month in September, government data revealed Thursday. Nonetheless, the overall number of unemployed was still the lowest since 1991.
The German economy expanded 0.3 percent in the June quarter. Citing weak domestic investment and slowing global growth, Germany's IfW think tank this month downgraded its growth projection for both 2012 and 2013 to 0.8 percent and 1.1 percent respectively.
In a report released this month, Bundesbank said the economy will continue its upward trend in the third quarter. However, the central bank warned that future development is subject to great uncertainty.