German retail sales unexpectedly fell in November, anchoring expectations for an annual decline in the sector for 2009, data showed today.
Preliminary figures from the Federal Statistics Office showed retail sales fell 1.1 per cent month-on-month in real terms and declined for a fourth month running on an annual basis - down 2.8 per cent.
The preliminary figures were below Reuters consensus forecasts for a month-on-month rise of 0.2 per cent and year-on-year decline of 1.7 percent
The Office said retail sales for the whole of 2009 would likely post a fall of between 1.9 and 2.1 per cent in real terms, and between 2.5 and 2.7 in nominal terms.
"2009 was not a good year for retail. The sector has been hit by the crisis, although not as strongly as others," said economist Juergen Michels from Citigroup.
German private consumption slumped in the third quarter after driving growth in the April-June period on the back of a government cash-for-clunkers car scheme that is now exhausted.
Economists now expect weakening household spending to weigh on growth in Europe's largest economy, despite the passing of a first major package of tax cuts by Chancellor Angela Merkel's new coalition last month.
The retail data were based on sales from seven states accounting for some 76 per cent of total retail turnover.
In nominal terms, sales fell 1.2 per cent month-on-month and declined for a seventh straight month year-on-year, falling 3.1 per cent.
In the first 11 months of this year, sales were down 1.8 per cent in real terms compared to the same period a year earlier.
Reuters