Real, seasonally adjusted retail sales:
November: -0.9% m/m, +0.8% y/y
October: -0.2% m/m, -0.6% y/y (unrevised)
FRANKFURT (MNI) – The weakness in German retail turnover continued
in November, with sales falling to six-month lows, the Federal
Statistical Office reported on Thursday.
Following October’s 0.2% dip, sales fell an additional 0.9% on the
month, more than retracing September’s one-off rebound. Still, turnover
managed a 0.8% gain on the year.
Taking both November and October’s figures together, turnover was
down 0.3% compared to 2Q, which in turn was up nearly 1.2% on the
quarter.
Disaggregating the annual rise, food drink and tobacco sales
increased 0.9%, matching the gain in non-food sales.
Suggesting that a sales upturn could be seen in December, the
latest Ifo institute survey showed an increase in optimism among
retailers last month. “The business climate index increased clearly in
retailing,” Ifo said, noting the strong gains in the assessment of both
the current situation and the near-term outlook.
While the ongoing debt crisis and economic uncertainty have many
Eurozone consumers cutting back on non-essential purchases, Germans are
likely to remain in a spending mood, as both jobless fears and borrowing
costs fall and income expectations rise.
A GfK consumer climate study published in December showed that
German households’ willingness to spend remained “extremely pronounced”.
“Against the backdrop of an escalating financial crisis and with
interest levels at a historic low, consumer are still more likely to buy
items of higher value than put their money into savings,” GfK said in a
press release.
— Frankfurt bureau: +49-69-720-142; email: frankfurt@marketnews.com —
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