Real, seasonally adjusted retail sales:
May: -2.8% m/m, +2.2% y/y
MNI survey median: +0.8% m/m, +2.4% y/y
MNI survey range: +0.3% to +1.5% m/m
April: flat m/m, +3.7% y/y (revised from +0.3% m/m)
—
FRANKFURT (MNI) – Retail sales in Germany unexpectedly fell sharply
in May, while April’s modest rise was revised down to no change, the
Federal Statistical Office reported on Thursday.
The 2.8% monthly downturn cut the annual increase to 2.2% from
3.7% in April. Compared to the first quarter, turnover in April-May was
down 2.6%, more than retracing 1Q’s 0.6% increase. Analysts had
unanimously expected a monthly rise.
Disaggregating the annual increase, food, drink and tobacco sales
were up by a modest 0.7% on the year, while non-food sales jumped 3.8%.
Surveys are signaling more favorable trends in the sector. The
latest retail PMI poll showed a solid increase in like-for-like sales in
June. Retailers said improved economic and weather conditions helped to
get consumers in a spending mood.
Retailers surveyed by the Ifo in June said current business
conditions remained quite good but were less optimistic about the
future, with only a slight majority expecting conditions to improve in a
half-year’s time.
After a moderate decline in May, consumers’ willingness to spend
rebounded in June to its highest level in four months, the GfK Group
reported.
“Positive economic results and extremely pleasing labour market
figures are improving consumers’ planning security, which plays an
important role particularly where larger purchases are concerned,” GfK
said. “Rising income expectations and the fact that price expectations
have barely increased are also providing further important boosts to the
indicator.”
Households polled by the Commission in June revised down their
expectations of future price trends to the lowest level since January.
An above-average proportion planned to make major purchases over the
coming year.
— Frankfurt bureau: +49-69-720-142; email: frankfurt@marketnews.com —
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