BERLIN — German retail sales fell unexpectedly on the month in July, data showed on Wednesday, dashing hopes that household spending in Europe’s largest economy will be powerful enough to drive a strong recovery in the third quarter from the coronavirus shock.
Retail sales were down by 0.9% on the month in real terms after a revised drop of 1.9% in June, data from the Federal Statistics Office showed. A Reuters forecast had predicted a 0.5% increase.
On the year, retail sales rose by 4.2% in real terms after an upwardly revised increase of 6.7% the previous month, the data showed.
Retail sales are a volatile indicator often subject to revision. (Reporting by Michael Nienaber Editing by Paul Carrel)