German retail sales rebound in May as lockdown lifted

Europe Materials 1 July 2020 11:34 (UTC +04:00)

German retail sales rose sharply in May, data showed on Wednesday, reflecting a rebound in private consumption as Germany lifted restrictions imposed to stop the spread of the coronavirus, Trend reports with reference to Reuters.

Retail sales rose by 13.9% on the month in real terms after a downwardly revised drop of 6.5% in April, data from the Federal Statistics Office showed. A Reuters forecast had predicted a 3.9% increase.

On the year, retail sales rose by 3.8% in real terms after a decrease of 6.4% in the previous month.

Fear of catching the coronavirus kept many consumers away from stores, which translated into a massive increase in online sales, the data showed.

Online sales rose by 28.7% in real terms while clothing and shoes sales fell by more than 22%.

A consumer sentiment survey published earlier this month showed that German consumers had become more eager to take out their wallets and more positive about their income prospects heading into July.

Retail sales are a volatile indicator often subject to revision.