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Section: News
The retail industry in Germany has reported a solid performance at the start of the new year, with sales figures showing an increase. However, the growth was not as robust as analysts had anticipated.
According to preliminary data from the Federal Statistical Office, retail revenues in January exceeded those of December by 0.2% when adjusted for inflation, and showed a year-on-year increase of 2.9%. Despite these positive indicators, the monthly growth fell short of economists' expectations. Thomas Gitzel, chief economist at VP Bank, highlighted concerns regarding job security that could impact retail sales throughout the year, suggesting that a significant recovery in private consumption may not be likely.
The German Retail Association (HDE) has forecasted a nominal increase in retail sales this year, anticipating a 2% growth, equating to a total of EUR677 billion. In January, retail sales figures were reported to be 0.1% higher than in December and 3.8% greater than in January 2024.
This data reflects a cautious optimism within the retail sector, although the potential for job losses remains a significant concern that could influence consumer spending patterns in the coming months.
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