Retailers’ sales in Germany increased unexpectedly significantly in October. Compared to the previous month, the shops had 1.1 percent more sales (in real terms) adjusted for price increases, as the Federal Statistical Office announced on Thursday. Including price increases (nominal), retailers had 0.7 percent more in their cash register than in September.
Analysts surprised
Analysts were surprised by the strength of the increase. They had only expected an increase in sales of 0.4 percent month-on-month. After the weak sales development in the summer months, revenues were “much stronger than we expected,” according to an assessment by the British analysis house Pantheon Macroeconomics.
Year-on-year, sales rose nominally by 2.6 percent in October. In real terms, however, there was a minus of 0.1 percent. The difference reflects the increased price level in retail, according to the Federal Office’s statement.
The non-food business such as textiles, books and furniture recorded a real sales increase of 0.6 percent in October compared to the same month last year. The price-adjusted sales of the internet and mail order business, on the other hand, were 1.2 percent below the level in October 2022. There was an increase compared to the previous month.
There is now hope that private consumption will become a “small pillar” of the German economy, said chief economist Thomas Gitzel from VP Bank. In his opinion, “there is hope that the German economy will not shrink again in the third quarter, but will simply stagnate.”(dpa)