German retail sales miss expectations

German retail sales fell 0.2% in December in real terms from a revised 0.4% increase the previous month, according to data released by Destatis.

The figures missed economists’ expectations for a 0.5% rise.

Retail sales were up 1.5% in real terms in the year to the end of December but this was also short of economists’ forecasts for a 2% increase.

Pantheon Macroeconomics said the report was disappointing.

“Assuming no major revisions next month, retail sales fell 0.1% quarter-on-quarter in Q4, down from a 0.9% surge in Q3. These data then confirm our suspicion that consumers’ spending slowed towards the end of last year, but overall 2015 was a spectacular year for the German consumer, with record growth rates. Fundamentals look solid for strong growth in 2016 too, but momentum likely will slow in the short run.”