Data published by the Federal Statistical Office (Destatis) showed that retail sales fell by 0.4% in January, slowing sharply compared to December (-1.6%). It was the third straight month of drop and the softest pace in the sequence. However, economists had expected an increase of 0.5%. In annual terms, retail sales fell by 1.4% after a 1.7% decline in December. Consensus estimates suggested a 1.5% drop.
The Destatis said that food sales rose by 1.1% m/m in January. Compared to January 2023, food sales decreased by 0.5%. This decrease in real sales combined with a significant increase in nominal sales (+3.9%) means that consumers bought fewer products than in the same months of the previous year, but were forced to spend significantly more money on them. Meanwhile, sales of non-food products did not change on a monthly basis and fell by 2.1% per year. As for sales via the Internet and by mail, sales increased by 2.0% compared to December, but fell by 2.8% per annum.