German retailers experience worst slump in seven years

German retail sales for September posted the largest monthly decline in over seven years, according to data released today.

The results show the country cannot rely on consumers to prop up Europe’s largest economy.

Speaking in Dublin, German Finance Minister Wolfgang Schaeuble on Friday said he believed consumption and employment remained strong in Germany, but that geopolitical risks were undermining confidence across Europe.

"I can tell you that consumption demand is high, our labour market is fine. There is a growing concern in Europe over geo-political risks, in Russia, the Middle East... altogether there is a worsening of confidence," he said.

“For economic development, the most important thing is confidence,” he added.

Data from the German Federal Statistics Office showed retail sales, which are notoriously volatile and tend to be extensively revised, dropped by 3.2 per cent in real terms compared with August - their biggest drop since May 2007.

- Reuters