German retail sales fall "unexpectedly" - 2,6 % yoy in August

Discussion in 'Economics' started by ASusilovic, Oct 1, 2009.

  1. BERLIN, Oct 1 (Reuters) - German retail sales fell by 1.5 percent on the month in August, official figures showed on Thursday, bucking expectations for a slight rise and suggesting consumers in Europe's largest economy remain cautious.

    The Federal Statistics Office said year-on-year, sales fell by 2.6 percent. The mid-range forecast of analysts polled by Reuters was for retail sales to rise by 0.1 percent on the month and to decrease by 0.8 percent year-on-year .

    Germany emerged from recession in the second quarter and economic indicators have pointed to further growth in the third quarter, with the key export sector picking up.

    The DIW economic institute on Tuesday forecast growth would accelerate to 0.7 percent on the quarter in the July-September period from 0.3 percent in the second quarter.

    "Today's retail sales throw cold water on the positive view of the third quarter," said Carsten Brzeski, economist at ING Financial Markets, adding that it was now up to the incoming government to cut taxes to foster household spending.

    The surprise fall in retail sales came despite firmer consumer morale, which rose to its highest level in 16 months heading into October on growing confidence the economy has passed its low point. [ID:nLO555423]

    Germany's Metro , the world's fourth-largest retailer, said last month it expected sales to fall further in the coming months, mainly due to rising unemployment.

    While economists expect German unemployment to rise in the coming months, a surge of layoffs has yet to hit and joblessness fell for a third consecutive month in September as statistical changes and government measures cushioned the labour market. [ID:nLU106708]

    In nominal terms, retail sales fell 0.7 percent month-on-month and decreased 3.5 percent on the year.

    The figures were based on sales data from seven states accounting for around 76 percent of retail activity in Germany.
  2. 1) Money moves markets, not opinions
    2) Can you buy a cup of coffee with "high morale" instead of euros? :cool:
  3. Let's see German retails sales once the "Kurzarbeit" schemes run out. The best is yet to come, as always conveniently AFTER the elections :cool:
  4. Take a look at DAX reaction. How many idiotic mutual fund managers are out there ????
  5. moarla


    the money has to go somewhere...
  6. Yeah, right. Into my pockets. :)