German retail sales fell by 1.4 % in June from the previous month, provisional figures released today by the national statistics office show, confirming a slump in household consumption.
In May, the volatile indicator had rebounded slightly, but falling consumer confidence suggests that the biggest European economy will continue to see weaker activity on its high streets.
The figure was calculated from seasonally corrected data provided by seven German states.
It came after a survey by the GfK institute found that consumer confidence has hit a five-year low as oil-fuelled inflation wiped out gains in employment and wages.
A food retailing sub index fell by 7% from June 2007, the national statistics office Destatis said, a sign that German consumers were curbing even essential spending.
