f
  •  
2/2  Reuters. FILE PHOTO: The coronavirus disease (COVID-19) outbreak in Germany Reuters. FILE PHOTO: The coronavirus disease (COVID-19) outbreak in Germany 2/2

BERLIN (Reuters) - German retail sales fell unexpectedly on the month in July, data showed on Wednesday, dashing hopes that household spending in Europe's largest economy will be powerful enough to drive a strong recovery in the third quarter from the coronavirus shock.

Retail sales were down by 0.9% on the month in real terms after a revised drop of 1.9% in June, calendar-adjusted data from the Federal Statistics Office showed.

This missed a Reuters forecast for a 0.5% increase.

The picture was a bit brighter, however, when looking at the development over the past 12 months.

On the year, retail sales rose by 4.2% in real terms after an upwardly revised increase of 6.7% the previous month, the data showed.

Compared with February, the month before the outbreak of the pandemic, retail sales were 0.9% higher in July, the office said, suggesting that this sector of the economy managed to recover relatively quickly in a V-shaped development.

Retail sales are a volatile indicator often subject to revision.

The German economy contracted by a record 9.7% in the second quarter as household spending, company investment and trade all collapsed at the height of the COVID-19 pandemic.

The government has since March unleashed an array of unprecedented rescue and stimulus measures, financed with record new borrowing of 217.8 billion euros, to help companies and consumers recover from the crisis.

The stimulus package includes a temporary cut in value-added tax from July 1 until December 31 to give domestic demand an additional push in the second half of the year.


Other relevant articles 
[2020-09-02 01:25:14] UK retailers step up their discounting in August, BRC says
[2020-09-01 20:40:04] U.S. employment projected to increase 6 million from 2019 to...
[2020-09-01 18:30:08] U.S. manufacturing activity at nearly two-year high; new orders...
[2020-09-01 16:25:03] U.S. construction spending almost flat in July: Commerce Department
[2020-09-01 16:15:03] U.S. manufacturing activity at 19-month high in August
[2020-09-01 15:55:03] Canadian factory sector growth jumps to two-year high in August
[2020-09-01 13:55:03] German lawmakers launch probe into Wirecard collapse
[2020-09-01 12:15:03] CEE manufacturing recovery marches on but signs of slowing
[2020-09-01 11:45:03] German Camper Van Maker Knaus Tabbert Plans Frankfurt IPO
[2020-09-01 11:00:05] UK mortgage approvals jump as housing market bounces back
[2020-09-01 10:45:03] UK factories see big upturn in August, but from low ebb: PMI
[2020-09-01 10:40:02] Germany revises upward 2020 GDP forecast, sees weaker rebound in...
[2020-09-01 10:25:02] Euro zone factory output stayed strong in August: PMI
[2020-09-01 10:20:03] German manufacturing recovery remains on track in August: PMI
[2020-09-01 10:05:02] Spanish prime minister moderately optimistic about economic...
[2020-09-01 07:25:06] Chinese Factory Activity Bolstered Over 2020’s First New Export...
[2020-09-01 06:10:03] Oil Up, Boosted by Weakened Dollar
[2020-09-01 01:10:30] South Korea revised second-quarter GDP down 3.2%, ticks up from advanced estimates
[2020-08-31 14:35:26] VAT cut pushes German inflation into negative territory
[2020-08-31 07:25:25] Number of German companies with short-time work declines in...
[2020-08-31 06:50:22] Gold Up Over Weak Dollar, Mixed Chinese and Japanese Data
[2020-08-31 02:10:22] Japan July industrial output rises 8.0% month-on-month
[2020-08-30 16:05:18] Week Ahead: More Equity Records After Dovish Fed; USD Weaker, Gold...
[2020-08-29 06:50:14] German court permits Berlin protests against coronavirus curbs
[2020-08-28 17:55:11] China revises list of technologies banned, restricted for export
[2020-08-28 14:50:11] U.S. consumer spending beats expectations in July
[2020-08-28 14:45:11] Exclusive: Germany seen revising upward its 2020 GDP forecast,...
[2020-08-28 13:30:11] Banks eye layoffs as short-term crisis ends, long-term costs emerge
[2020-08-28 11:10:20] Euro zone sentiment recovers for fourth straight month in August
[2020-08-28 09:55:10] European Stocks Slip as Weak Economic Data Hit Recovery Hopes
[2020-08-28 09:15:10] French savings surged, profits plunge in record second-quarter...
[2020-08-28 09:10:13] Dollar Weakens Post Powell; Yen Gains on Abe Exit Reports
[2020-08-28 08:30:11] Weaker German consumer morale casts some doubt on strong recovery
[2020-08-28 04:35:10] Oil Flat After Laura Leaves a Weaker-Than-Expected Impact on...
[2020-08-28 01:15:11] UK business confidence rises from lows, job cuts on the way:...
[2020-08-27 20:25:07] U.S. Labor Department changes jobless claims data methodology...
[2020-08-27 16:10:11] U.S. pending home sales rise for third straight month in
[2020-08-27 14:45:07] U.S. weekly jobless claims drift around 1 million
[2020-08-27 14:40:07] Initial Jobless Claims 1.006 Million; Second Reading of GDP -31.7%
[2020-08-27 04:05:17] Australia second-quarter business investment contracts by most in...
[2020-08-26 16:15:07] White House says Trump could act unilaterally to avoid U.S....
[2020-08-26 16:00:08] U.S. core capital goods orders rise but remain below February...
[2020-08-26 09:45:06] German coalition agrees 10 billion euro extension of coronavirus...
[2020-08-26 09:15:06] French consumer confidence holds steady in August
[2020-08-26 08:55:06] Additional German economic relief measures to cost 10 billion...
[2020-08-25 16:20:03] U.S. consumer confidence unexpectedly falls in August
[2020-08-25 16:20:03] U.S. new home sales beat expectations in July
[2020-08-25 15:00:05] Wirecard lays off more than half of remaining staff in Germany
[2020-08-25 14:35:03] Indian government consumption key to growth in economy amid...
[2020-08-25 12:20:03] UK retailers cut jobs by most since 2009, CBI says
[2020-08-25 11:10:04] German coalition agrees on insolvency freeze extension: Scholz
[2020-08-25 10:55:02] German finance minister says confident we can agree on blueprint...
[2020-08-25 10:45:03] Germany on "road to recovery" as business morale brightens...
[2020-08-25 09:15:08] Dollar Edges Lower Ahead of Jackson Hole; Euro Gains on German...
[2020-08-25 08:25:02] German economy shrank by record 9.7% quarter-on-quarter in second...
[2020-08-25 06:40:02] Gold Up Over Weak Dollar and Increasing COVID-19 Worries
[2020-08-25 05:45:47] Australian employment falls further, intensifying labor market...
[2020-08-25 01:20:25] CEOs speed up digital push and downsize offices, KPMG survey shows
[2020-08-24 17:20:22] New Orleans renters face toxic mix of crumbling homes, weak...
[2020-08-24 15:05:33] Steady oil price belies weakening physical market
[2020-08-24 12:25:25] Germany investigates Porsche over suspected petrol engine...
[2020-08-24 08:15:23] Safe bet? Sovereign funds rethink once-reliable real estate
[2020-08-24 00:30:22] Mexico has won back nearly 67,000 jobs in August, president says
[2020-08-23 13:35:18] German labour minister to extend short-time work allowance: BamS
[2020-08-22 17:35:15] How big gatherings spread COVID-19: German scientists stage concert experiment
[2020-08-22 13:05:14] More than half of Spanish companies reopen after closing at...
[2020-08-22 03:15:14] Erdogan announces biggest Turkish gas find in Black Sea
[2020-08-21 23:50:12] Mexico inflation seen ticking up to 14-month high in early August
[2020-08-21 21:45:12] Colombia unveils plan to boost foreign investment, multinational...
[2020-08-21 21:40:11] Brazil posts biggest formal job gain for July since 2012
[2020-08-21 16:15:11] U.S. existing home sales shoot to near 14-year high in July
[2020-08-21 16:10:16] U.S. business activity surges to early 2019 levels: Markit flash...
[2020-08-21 10:50:11] UK firms see sharp August upturn but job cuts mount, PMI shows
[2020-08-21 10:15:10] Euro zone business recovery stuttered in August: PMIs
[2020-08-21 09:45:11] German recovery losing some momentum as services struggle in...
[2020-08-21 09:40:10] French business activity weaker than expected in August: PMI
[2020-08-21 09:05:14] Forex - Dollar Weakens Amid Recovery Concerns, More Losses Seen...
[2020-08-21 08:20:13] UK retail sales rise above pre-pandemic levels
[2020-08-21 01:20:10] Britons a bit more upbeat on finances but worried about economy,...
[2020-08-20 15:30:07] Crude Oil Prices Fall as Jobless Claims Point to Weaker Demand
[2020-08-20 14:50:07] U.S. weekly jobless claims back over one million
[2020-08-20 14:40:07] Initial Jobless Claims Unexpectedly Rise to 1.106 Million
[2020-08-20 11:00:10] UK online job adverts slip back, ONS says
[2020-08-20 09:45:06] Coronavirus gives German bicycle retailers a boost
[2020-08-20 00:15:11] German tax revenues stabilize in July, industry seen recovering...
[2020-08-19 20:40:09] Fed policymakers zero in on strategy tweaks, minutes show
[2020-08-19 16:40:07] Exclusive: Germany, France push for WHO reform talks in September
[2020-08-19 09:40:10] European shares weaken after Wall Street rally as growth worries persist
[2020-08-19 09:15:07] Forex - Dollar Weakens Ahead of Fed Minutes; Sterling Gains
[2020-08-19 08:50:07] German institute says coronavirus vaccinations could start in...
[2020-08-19 08:40:07] UK inflation jumps unexpectedly in July
[2020-08-19 08:05:07] Taiwan to further free up economy, aiming to become Asian...
[2020-08-18 22:55:05] New York transit agency turns to Fed for $450 million borrowing
[2020-08-18 20:35:28] New Canadian Finance Minister Freeland earned spurs in trade...
[2020-08-18 17:05:04] U.S. housing starts surge in July in rare pandemic bright spot
[2020-08-18 14:15:04] Nokia wins second round of legal fight against Daimler on patent...
[2020-08-18 13:50:08] Norway wealth fund sees turbulent times ahead on financial...
[2020-08-18 10:10:03] German engineering exports plunge in second-quarter as pandemic...
[2020-08-18 09:40:03] Forex - Dollar Weakens; Bearish Factors Mount
[2020-08-18 07:05:02] Gold Up Over Weaker Dollar, But Gains Capped By Signs of Global...