German retail sales slipped by 1.8% in June from the May level, disappointing expectations for a slight increase, provisional data from the national statistics office showed today.
Analysts had pencilled in a modest rise of 0.5% for the biggest European economy. In May, sales fell by 1.3% after gaining 1.4% in April, according to revised figures provided by the Destatis office.
It based its estimate for June on seven German states that represent around 76% of the country's total retail sales. On a 12-month basis, sales shed 1.6% at constant prices, Destatis added in a statement.
Economists said the figures demonstrated that a counter reaction to the government's car scrapping bonus had begun and would continue in coming months.
Car sales have been boosted since January by a state subsidy of €2,500 for those who turn in an old car to buy a new one, but the surge has come in part at the expense of spending on other big-ticket items.
