German retail sales unexpectedly drop in September

German retail sales fell 1.4% in September compared to the previous month, surprising analysts who had expected a 0.2% increase, Destatis revealed on Monday.

Compared with September last year, retail sales grew 0.4%, missing forecasts for a 1.5% rise.

The figures, which were adjusted for inflation and seasonal swings, were seen to suggest that terrorism concerns and uncertainties surrounding the global economy have dampened household consumption.

A survey by GfK last week revealed a fall in consumer sentiment due to an challenging external trade environment and terrorism worries.