German retail sales unexpectedly fell on the month in April, putting a dampener on hopes that domestic demand will be a major growth driver for Europe's largest economy this year.
The notoriously volatile indicator fell by a real 0.4% on the month after dropping by an upwardly revised 0.1% in March, data from the Federal Statistics Office showed.
Economists said the weaker than expected figure was due to spring coming late this year.
"The cold winter has pushed prices for seasonal vegetables higher, prompting households to cut back. This effect may last into May as well, before gradually fading," he said, adding that the underlying fundamentals for consumption remained strong.
Germany's unemployment rate is hovering close to its lowest since unification more than two decades ago, workers have secured inflation-busting wage hikes and inflation is moderate, suggesting domestic demand will remain buoyant this year.
Retail sales rose by a solid 1.8% on the year, more than the 0.8% rise forecast, helped partly by an extra two shopping days in April 2013 compared with last year.
Private consumption saved Germany from slipping into recession in the first three months of this year and the government is relying on consumers to help the economy grow by 0.5% this year as exports, its traditional backbone, weaken due to the euro zone crisis and a global slowdown.
Consumer morale remains strong in Germany, with a survey last week showing shoppers felt more inclined to spend than at any point since September 2007.
