June Retail Sales Fall in Germany

Retail sales in Germany fell by a worse-than-expected 3.9% year-on-year in June, after higher inflation eroded consumer purchasing power.

The Federal Statistics Office added
that sales, adjusted for inflation and seasonal swings, fell 1.4%
when compared to May, when they rose 0.5%. For the first six months
of the year, sales fell 0.8% year-on-year, adjusted for inflation,
but rose a nominal 1.8%. Surging food and oil prices have been
hitting consumers hard, even as the economy shows increasing signs of
weakening. German investor and executive confidence dropped last
month, as overall European retail sales fell. And to add to retailer
woes, labour unions are pushing for higher wages to compensate rising
costs.