German retail sales fall unexpectedly in July

Retail sales were down by 0.9% on the month in real terms after a revised drop of 1.9% in June, data from the Federal Statistics Office showed. A Reuters forecast had predicted a 0.5% increase. On the year, retail sales rose by 4.2% in real terms after an upwardly revised increase of 6.7% the previous month, the data showed.

German retail sales fell unexpectedly on the month in July, data showed on Wednesday, dashing hopes that household spending in Europe's largest economy will be powerful enough to drive a strong recovery in the third quarter from the coronavirus shock. Retail sales were down by 0.9% on the month in real terms after a revised drop of 1.9% in June, data from the Federal Statistics Office showed. A Reuters forecast had predicted a 0.5% increase.

On the year, retail sales rose by 4.2% in real terms after an upwardly revised increase of 6.7% the previous month, the data showed. Retail sales are a volatile indicator often subject to revision.