German retail started the second half of the year surprisingly weakly. In July, sales decreased by 1.5 percent, as the Federal Statistical Office announced on Friday. Analyst: The inside was surprised. On average, they had expected stable development after the proceeds rose by 1.0 percent in June.
The sales in internet and mail order business were above average. Here the Federal Office reports a decline in sales by 3.8 percent adjusted by price. The sales in retail with food also contributed 1.8 percent to weak development with a decline.
Thomas Gitzel, chief economist of VP Bank, does not expect a significant improvement in the coming months. Accordingly, no upward trend of private consumption can be expected. Gitzel referred to the increased tendency to save due to weak economic reports.
In addition, people in Germany spend their money on vacation. In the case of expenses for food and other goods, on the other hand, it is saved “which will also put a strain on retail sales in the second half of the year,” said Gitzel.