German retail sales plunged by 1.6% in October from the previous month, preliminary data show today, catching economists by surprise and underscoring by how much consumers are tightening their belts as Europe's biggest economy falls into recession. Analysts had forecast a gain of 0.7%.
A 12-month comparison painted a similarly gloomy picture, with sales falling by 1.5% in October from the same month a year earlier, the Destatis statistics service said. Analysts had forecast an increase of 0.7%.
Destatis revised its initial readings for September higher to show a fall of 1% from August and a rise of 2.4% on a 12-month basis. The first estimation had indicated a monthly decline of 2.3% and an annual increase of 1.2%.
Germany fell into recession in the third quarter of the year, and economists expect it to last well into 2009. In the first 10 months of 2008 meanwhile, retail sales lost 0.4% compared with the same time a year earlier, Destatis said.
