German Retail Sales Rise Unexpectedly in September

By Maria Martinez

(Reuters) – German retail sales unexpectedly rose in September, continuing an upward trend that began in June, though at a slower pace.

Retail sales increased by 1.2% compared to the previous month, according to data from the statistics office released on Thursday.

Analysts polled by Reuters had forecasted a 0.5% decrease.

The economy grew by 0.2% in the third quarter compared to the previous three months, driven by government and household spending, as reported by preliminary data from the federal statistics office on Wednesday.

September's data, along with the business climate index for retailers in October, indicates that retail sales continued to be a growth driver heading into the last quarter of the year.

The Ifo business climate index in German retail saw a slight improvement in October, according to the latest surveys.

Retailers describe their current situation as somewhat better, but business expectations for the upcoming months have remained nearly unchanged at a low level, as revealed by the Ifo survey.