Retail sales in Germany are falling at a faster-than-expected rate in July 2017. The indicator, which is volatile and is often subject to revisions, is down by 1.2% on a monthly basis, according to data from the federal statistical office Destatis. The data shows that consumer spending is likely to lose some of the momentum at the beginning of the third quarter. The economists expected a decline of 0.4%, while a month earlier was registered a growth of 1.3%.
On an annual basis, retail sales in the federal republic grew by 2.7%. which is below the forecast for a 3.5% jump.
Retail sales of food decreased 1.6%, while non-food sales advanced 4.7% in July.
The private consumption surpassed exports as the main driver of growth, as Germany has record low unemployment, rising real wages and ultra-low interest rates.
During January to July, retail trade turnover increased 2.8 percent from the same period of previous year.