Key Facts
• On August 29, Germany’s Federal Statistical Office reported a 1.5% drop in July retail sales.
• The decline exceeded market expectations of a 0.4% decrease.
• Retail sales have steadily slowed since strong growth at the end of last year.
• Chief Economist Claus Vistesen noted a consistent deceleration in retail performance in 2023.
• Hamburg Commercial Bank’s Cyrus de la Rubia highlighted U.S. tariffs as a factor pressuring external demand.
• July import prices fell 1.4% year-on-year, surpassing analysts’ forecast of a 1.2% drop.
Summary
Germany’s retail sales in July fell by 1.5% compared to the previous month, significantly exceeding the anticipated 0.4% decline, according to data released by the Federal Statistical Office on August 29. Economists attribute the drop to a steady slowdown in retail activity throughout 2023, following robust growth at the end of 2022. While external demand remains under pressure due to U.S. tariffs, hopes for increased consumer-driven demand were unmet in July. Additionally, import prices in July decreased by 1.4% year-on-year, a sharper decline than the predicted 1.2%.
