German retail sales fell by 0.1 per cent on the month in June but a stronger-than-forecast yearly rise suggested consumer spending, which is expected to drive growth this year, remains a pillar of support for the economy as foreign trade weakens.

The volatile indicator, which is often subject to revision, was in line with expectations in a Reuters poll for a 0.1 per cent monthly drop, data from the federal statistics office showed on Friday.

The monthly data for May was revised down to a rise of 0.7 per cent from a previously reported increase of 0.9 per cent.

On the year, annual retail sales in Europe's largest economy climbed by 2.7 per cent in real terms – far more than the 1.3 per cent increase forecast by economists in a poll. – (Reuters)