German retail sales inch up in May

Europe Materials 30 June 2022 11:37 (UTC +04:00)
German retail sales inch up in May

German retail sales increased slightly in May, even as high inflation continued to weigh on consumers, data showed on Thursday, Trend reports with reference to Reuters.

Retail sales rose by 0.6% in real terms compared to the previous month, the Federal Statistical Office reported.

Analysts had predicted a 0.5% increase in a Reuters poll.

Despite the overall rise, food retail sales fell in May on the previous month by 0.6% amid significantly higher prices for groceries, the office said.

That was nonetheless a recovery after grocery retailers saw a sales decline of 7.7% in April, the biggest month-on-month drop since the time series began in 1994.

In May, the non-food retail sector recorded real sales growth of 2.9% compared with April, according to the data.

Sales in textiles, clothing, footwear and leather goods were particularly strong, growing by 10.6% month on month and 59.8% year on year.

Preliminary data released on Wednesday showed inflation unexpectedly cooling off in June in Europe's largest economy, falling to 8.2% compared with 8.7% in May.

"The inflation scare continues to chill consumers' bones," said Alexander Krueger, chief economist at private bank Hauck Aufhaeuser Lampe.

"At present, it is not apparent where a turnaround in sentiment will come from," Krueger commented.