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German retail sales rebound in July

German retail sales up 1.4% in July
German retail sales up 1.4% in July

German retail sales rose at their strongest pace in nine months in July, reinforcing expectations that private consumption will support growth in Europe's largest economy this year. 

The 1.4% increase, measured in real terms, was above a Reuters consensus forecast for a rise of 1% and the biggest monthly increase since October of last year. 

Retail sales is a notoriously volatile indicator that is often subject to large revisions. 

The June reading was revised to a drop of 1% from an originally reported decline of 2.3%. 

On a year-on-year basis, retail sales posted their second strong month of strong gains, rising 3.3% after a 5.2% increase in June. 

A breakdown showed a robust 9.2% rise in internet and mail-order sales. 

The robust retail sales figures add to a generally healthy economic picture in Germany, although a slowdown in China has raised questions about whether exports could weaken later this year.