German retail sales unexpectedly fell by 0.3 per cent on the month in July but economists said consumer spending should rise moderately in the coming months, reinforcing the recovery in Europe's largest economy.
On an annual basis, sales were up 0.8 per cent, the Federal Statistics Office said today.
The month-on-month fall was the second in a row, but June's reading was revised up to a fall of 0.3 per cent from a drop of 0.9 per cent.
German unemployment fell in August to its lowest since November 2008, laying the ground for the further growth in consumer spending that the economy needs for a more balanced rebound.
The German economy grew by 2.2 per cent in the April-June period -- its fastest quarterly expansion in reunified Germany.
The record growth was driven by exports and investment but private consumption also made a contribution, and many economists expect households to spend more as the economy picks up.
The retail data were based on sales in seven states accounting for some 76 per cent of total retail turnover. In nominal terms, sales fell 0.1 per cent on the month and were up 2.4 per cent on the year.
Reuters