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Retail sales surge

The Local · 29 Jul 2011, 12:39

Published: 29 Jul 2011 12:39 GMT+02:00

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Analysts polled by Dow Jones Newswires had forecast a much more modest seasonally-adjusted increase of 1.7 percent from May, but economists agree that the indicator is volatile and subject to frequent revisions.

A statement issued by the Destatis national statistics office also noted that the result was affected by a change in the sample of companies that were polled.

The increase was still a sharp rebound from the month-on-month fall of 2.5 percent in May, however.

"While the May number was the worst in the last 10 years, the June number is the highest since 2007," Commerzbank analyst Ulrike Rondorf noted.

On a 12-month basis, retail sales fell by 1.0 percent in June, but Destatis noted there were 24 business days in June 2011, compared with 26 in June 2010.

ING senior economist Carsten Brzeski felt the data "show that German consumers are finally waking up."

"Of course, the rather discouraging track record of German retail sales is reason enough not to get overly excited," Brzeski added.

The figures nonetheless "offer some glimmer of hope that at least the German economy is heading towards a soft, not hard, landing," he said.

On a quarterly comparison, retail sales from April through June were 0.4 percent lower than in the first quarter, which Rondorf said "supports our expectation that German growth slowed considerably in the second quarter."

Story continues below…

In the six months from January through June meanwhile, sales gained 1.3 percent from the same period a year earlier, Destatis said.

German retail federation HDE has forecast an annualised gain of 1.5 percent for 2011 as a whole, but HDE president Josef Sankjohanser noted recently that "the traditionally strongest months for retail sales still lie ahead."


The Local (news@thelocal.de)

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Your comments about this article

12:59 July 29, 2011 by freechoice
yeah! spend spend spend! as we approach 2012!!

be good to yourselves, be good to others!

why be a scrooge when we are almost reaching the end?

at least make it a better place for everyone of us? : )
23:54 July 29, 2011 by vonSchwerin
If that photo is indicative of what is being increasingly sold, then this is VERY good for Germany.
12:47 July 31, 2011 by jg.
It was my wife. She always has to have new stuff to wear for a visit to her family and friends in Ukraine :-)
15:16 August 2, 2011 by fikri4u
Good for German economy. It will also be timely for Malaysia's eCosway (www.ecosway.com) a Network Retailing conglomerate which is making Germany as its entry point into Europe.

Remember eCosway, because you are going to see that name in every shopping malls in major cities around Germany. Why do I say that because its revolutionary franchise business model which engage locals in a Retail Store for FREE for serious entrepreneurs. The business is going to be profit sharing basis between the franchisor (eCosway) and the franchisee. Franchisor will bare the financial risks (pays rental, maintenance, renovation and stocks) while the franchisee sells the product in the retail store and attract new customers to the store. There are already more than 2000 such stores around the globe which include Malaysia, Singapore, Taiwan, Thailand, Indonesia, Hong Kong, Japan, Brunei, Macao, Australia, New Zealand, United Kingdom and the USA.

Like http://www.facebook.com/pages/Network-Retailing-Germany/206110356102733 to stay on top of the latest development in eCosway's arrival into Germany, and Europe.
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