German retail sales plummet in September, private consumption remains robust

Retail sales in Germany plummeted during the month of September, while private consumption remained robust during the period; this indicated a possible sign that terrorism concerns and global economic uncertainties have started to undermine household consumption in Europe's largest economy.

Germany’s retail sales, adjusted for inflation and seasonal swings, dropped 1.4 percent in September from August, their sharpest fall in two years, data released by the country’s statistics agency, Destatis showed Monday. Economists polled by Reuters had forecast a 0.2 percent gain.

However, compared with September last year, retail sales were up 0.4 percent, in inflation-adjusted terms, undershooting the Reuters consensus forecast of a 1.6 percent increase. The monthly figure for August was revised up to a fall of 0.3 percent from a previously reported dip of 0.4 percent.

Further, the yearly value was revised up to an increase of 3.8 percent from a previously reported rise of 3.7 percent. The weak data came after a survey by the GfK Research Institute showed last week that the mood among German consumers worsened heading into November.

Meanwhile, Germany’s HDE retail association expects overall nominal sales to grow by 2.5 percent this year.