Financial News: German Retail Sales Unexpectedly Fall In September

German Retail Sales Unexpectedly Fall In September

10/31/2023 - 10:15:00 (RTTNews)

(RTTNews) - Germany's retail sales declined in September, defying expectations for a rebound, as high inflation and interest rates continued to damp spending.

Retail sales fell 0.8 percent month-on-month following a 1.2 percent slump in August, preliminary data from the statistical office Destatis showed Tuesday. Economists had forecast a 0.5 percent gain.

Sales of food grew 2.2 percent from the previous month, while those of non-food goods shrunk 3.7 percent.

Internet and mail order sales declined 3.7 percent compared to the previous month.

On a year-on-year basis, retail sales decreased 4.3 percent in September after a 2.3 percent fall in the previous month. Economists were looking for a 4.0 percent gain.

Preliminary data released on Monday showed that <a href=https://www.rttnews.com/3400469/german-gdp-falls-less-than-expected-in-q3.aspx target=_blank >the German economy shrank</a> less than expected, by 0.1 percent, in the third quarter, reversing an upwardly revised 0.1 percent in the previous three months.

Although the breakdown of GDP was unavailable, the statistical office said household spending was lower.

Separate official data showed that consumer price <a href=https://www.rttnews.com/3400537/german-inflation-slows-more-than-expected-lowest-since-august-2021.aspx target=_blank >inflation in Germany</a> slowed more than expected to 3.8 percent in October, it lowest in over two years due to falling energy prices.

While easing price pressures validate the latest "pause" in the interest rate hikes by the European Central Bank, the big question is if the trend is sustainable given the significant risks to the outlook.

<a href=https://www.rttnews.com/3398611/german-consumer-sentiment-to-deteriorate-further-in-november.aspx target=_blank >Consumer confidence in Germany</a> is set to weaken further in November, survey results published jointly by GfK and the Nuremberg Institute for Market Decisions, showed last week, adding to fears of a recession as private consumption is unlikely to be a pillar of the economy.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Fed Chair Jerome Powell Calls Rate Cut Speculation 'Premature' (18 min(s), 48 sec(s) ago)
(RTTNews) - While forecasts suggest the U.S. central bank could start cutting interest rates as so ...Full Story»

U.S. Construction Spending Climbs More Than Expected In October (26 min(s), 48 sec(s) ago)
(RTTNews) - Construction spending in the U.S. rose by more than expected in the month of October, ...Full Story»

U.S. Manufacturing Index Indicates Continued Contraction In November (15 min(s), 48 sec(s) ago)
(RTTNews) - The Institute for Supply Management released a report on Friday showing a continued co ...Full Story»

UK Manufacturing Downturn Eases In November (34 min(s), 12 sec(s) ago)
(RTTNews) - The downturn in British manufacturing activity softened in November as output and new ...Full Story»

Irish Economy Shrinks 1.9% In Q3, More Than Estimated (01 hr(s), 06 min(s), 12 sec(s) ago)
(RTTNews) - Ireland's economy contracted slightly more than initially estimated in the third ...Full Story»

Eurozone Factory Sector Downturn Slows (01 hr(s), 37 min(s), 12 sec(s) ago)
(RTTNews) - Euro area manufacturing sector remained in the contraction zone but deterioration in p ...Full Story»

Swiss Economy Recovers In Q3 (02 hr(s), 48 min(s), 12 sec(s) ago)
(RTTNews) - Switzerland's economy rebounded in the third quarter underpinned by exports and co ...Full Story»

Irish Manufacturing Activity Stabilizes In November (04 hr(s), 09 min(s), 12 sec(s) ago)
(RTTNews) - Ireland's manufacturing activity signaled a stabilization in November amid rises i ...Full Story»