Benjamin Chiou Sharecast News
31 Jan, 2025 07:40

German retail sales see sharpest decline in two years

Retail sales in Germany unexpectedly dropped by their most in more than two years in December, according to the Federal Statistical Office (Destatis) on Friday.

Retail sales fell by 1.6% over the month of December in real terms (adjusted for price), following a revised 0.1% decline in November, making the largest monthly drop since October 2022.

The consensus forecast was for a monthly increase of 0.2%.

Destatis reported that food sales were 1.7% lower than November, while non-food sales fell 0.7%.

When compared with December 2023, sales were 1.8% higher, though growth eased significantly from the 2.9% rate seen in November, missing the 2.5% increase that analysts were expecting.

For 2024 as a whole, German retail sales grew by 1.1% in real terms, as a 0.5% year-on-year decline in the first half was offset by 2.6% growth in the second.

However, compared with 2021 – the strongest year for retail sales since records began in 1994 – annual industry turnover was down 2.9%.

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