German retail sales miss forecasts in September

German retail sales stagnated in September, figures released on Friday showed.

According to data published by Destatis, the country’s statistics office, retail sales were flat in September compared with a larger than initially thought 0.7% decline in the previous month and with analysts’ expectations for a 0.4% increase.

On a year-on-year basis, sales grew strongly, increasing by 3.4% compared to the same period in 2014 and with a downwardly revised 2.1% gain in August.

September´s figure was short of forecasts for a 4.1% increase.

Government statisticians originally estimated retail sales jumped by 2.5% in August.

Pantheon Macroeconomics described the data as "soft", especially given downwards revisions to the August numbers.

"But the consensus was also unexplicably bullish given base effects indicating that even a poor month-to-month number would push up the year-over-year rate."

The research shop also identified strong gains in internet purchases as a "key" trend, adding that the 3.3% year-to-date rise in retail sales was "solid".