German retail sales fall in June

| August 3, 2009 | 0 Comments

Germany, which is Europe’s largest economy, is in the midst of its worst economic downturn since the Second World War and has been hit by a slump in demand for exports.

However, recently the economy has experienced a number of positive reports pointing to an improvement within the economy.

Today, however, the Federal Statistics Office has announced a decline in retail sales in June with a fall of 1.8% compared with the previous month. Many analysts had a expected a rise, albeit a marginal one.

On an annual basis sales in June are down 1.6%, according to the Federal Statistics Office.

Commenting on today’s figures, Klaus Schruefer, an economist at SEB, said: “In the medium-term, retail sales should be burdened further when short-time work gives way to job losses. Then a lot of workers will have less in their pockets.”

Last week, official figures revealed that German consumer prices fell for the first time in 22 years in July, driven by falls in energy prices, which reached a high in summer 2008.

Prior to today’s retail sales figures, the slump in exports had begun to ease while confidence among consumers and businesses had risen, leading to hopes for a tentative recovery.

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