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Unexpected rise in German retail sales

Germany - Consumption easing crisis
Germany - Consumption easing crisis

German retail sales rose by an unexpected 0.5% in April from March, suggesting that consumption could help ease the country's historic recession.

Analysts had expected retail sales, adjusted for calendar and seasonal effects, to slip by 0.1% on the month.

If the development continues in coming months, it could attenuate a contraction of Europe's biggest economy, which is in the midst of its worst recession since World War II.

On an annual basis however, retail sales fell by 0.8%, according to data compiled by the national statistics office from seven German states which account for roughly 76% of all sales.

The figures do not include sales of cars and petrol.

In the four-month period from January to April, sales lost 2.4%, the Destatis office said.

The latest index of German consumer confidence showed little change meanwhile, the GfK institute said earlier this week, and has been essentially stable since March as consumers wait to see if the economic recession has bottomed out.