German retail sales miss forecasts in September

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".