German retail sales were stronger than expected in September but still fell on an annualised basis for the second month in a row owing to a calendar effect.
Retail sales in the biggest euro zone economy rose by 2.3% on a monthly basis, posting a much sharper rise than the 0.9% average forecast. They had fallen in August by 1.6% from the level in July.
On a 12-month basis however, retail sales dropped by 2.2% following a decrease in August, though the federal statistics office Destatis noted there had been one less shopping day in September 2007 than in the same month a year earlier.
Food and tobacco showed the sharpest year-on-year falls, down by 4.6% at comparable prices. In categories such as clothing, footwear, cosmetics, medicines and mail-order meanwhile, sales rose on the year, Destatis said.
German unemployment has been steadily decreasing this year, and wages have also risen somewhat as the economy expands, prompting economists to forecast that household consumption, traditionally the country's weakest economic link, would ultimately rebound.
