German retail sales data revised up

Germany's Federal Statistics Office said today it had revised up January retail sales data to show a monthly decline of 4

Germany's Federal Statistics Office said today it had revised up January retail sales data to show a monthly decline of 4.3 per cent from a drop of 5.1 per cent reported at the beginning of this month.

On the year, sales fell 1.6 per cent in volume terms, the Office said, revising down a previously reported decline of 1.4 per cent.

The monthly figures are adjusted for working days and seasonal swings. A three-point increase in sales tax to 19 per cent at the start of this year helped depress retail turnover in January and analysts say the tax measure will dent overall growth in the first quarter of this year.

However, most predict Europe's biggest economy will expand by at least 2 percent in 2007 compared with the previous year, not far short of a six-year peak of 2.7 per cent recorded in 2006.

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Metro AG, Germany's biggest retailer, said today it expected sales this year to increase 8-9 per cent. The Statistics Office's measure of sales excludes vehicles and petrol stations.