German retail sales rise at a faster pace in Feb, retailers optimistic regarding one-month outlook

German retail sales picked up pace in February, according to the latest PMI data. After adjusting for seasonal factors, headline Retail PMI rose to 51.2 in February, up from 50.3 in January. PMI signalled a third successive month-on-month expansion in sales and was above the long-run series average (50.6), but below the level for 2016 as a whole (52.0).

However, sales declined compared with one year earlier and the annual rate of decline was the fastest since September 2014. Meanwhile, retailers were at their most optimistic regarding the one-month outlook for sales for four months.

Purchase price inflation accelerated to a 21-month high largely on account of fuel and fresh food. The rate of purchase price inflation accelerated for the fifth month running to the highest since May 2015.