Data published by the Federal Statistical Office (Destatis) showed that retail sales fell by 1.5% in October, almost offsetting the September increase (+1.6%), and recording the sharpest decline since October 2022. It was also the first drop in sales in the last 4 months. Economists had expected sales to decline by 0.3%. In annual terms, retail sales rose by 1.0% after a 4.2% increase in September (the strongest growth since February 2022). Consensus estimates suggested a 3.2% increase.
The Destatis said that food sales rose by 0.1% m/m in October. Compared to October 2023, food sales increased by 0.9%. This increase in real sales combined with an increase in nominal sales (+3.5%) means that consumers bought fewer products than in the same months of the previous year, but were forced to spend more money on them. Meanwhile, sales of non-food products fell by 2.2% on a monthly basis and rose by 1.0% per year. As for sales via the Internet and by mail, sales decreased by 2.4% compared to September and increased by 8.0% per annum.
A separate report showed that nominal wages in Germany in the 3rd quarter were 4.9% higher than in the same quarter of the previous year. Consumer prices increased by 2.5% over the same period. Real wages were thus 2.9% higher in the 3rd quarter than in the same quarter of the previous year. With this sixth increase in a row, the positive trend of real wage development continued. In the quarters from the end of 2021 to the beginning of 2023, employees still experienced average real wage losses.