Thursday, 8 December, 2022

German retail sales down more than expected

German retail sales posted a month-on-month decline of 1.3% in August, official data released on Friday by the Federal Statistical Office (Destatis) shows. The figure followed a downwardly revised 0.7% rise in July and came in worse than the consensus forecast of a 1.1% decline.

Retail trade recorded a 4.3% decrease in turnover in real terms compared to August 2021, according to Destatis. Meanwhile, retail food sales were down 1.7% on the month and 3.1% on the year, the lowest figure in more than five years, reports RT.

The latest data revealed a surge in import prices and drops in industrial output, adding to signs that Europe's largest economy is heading for recession. Last month, German inflation reached its highest level in more than 25 years. This was driven primarily by high energy costs, which inevitably cuts into consumer spending.

In August, import prices for energy soared 162.4% versus the same period a year ago, while the price of natural gas saw a massive year-on-year surge of 306.3%.

The energy crisis across the EU has largely been caused by skyrocketing gas prices due to sanctions Western allies have imposed on Russia over the conflict in Ukraine.

Industrial output in August dropped by 0.8% month-on-month, the sharpest fall since March, which was the first full month of Russia’s military operation in Ukraine, the statistics office said.

German annual consumer inflation rose to a new peak in September, hitting 10%, according to provisional data released in September.