German retail sales up in November

German retail sales rose in November as shoppers brought forward spending to beat a sales tax rise that economists expect to …

German retail sales rose in November as shoppers brought forward spending to beat a sales tax rise that economists expect to have boosted private consumption in the final three months of last year.

Bundesbank data this morning showed sales including vehicles and gas station trade rose by 0.4 per cent on the month in real and seasonally adjusted terms and by 0.9 per cent compared with the same month a year earlier.

In October, sales were unchanged on the month and rose 1.1 per cent on the year.

Earlier today, Federal Statistics Office data showed an unexpected fall in November sales, but economists played down the significance of those figures, noting they are often revised.

READ MORE

Europe's biggest economy probably grew by around 2.5 per cent last year, the strongest performance since 2000. Exports and corporate investment have surged and consumer spending has shown signs of strength.

Analysts say the impact of the sales tax hike on overall growth will be temporary and forecasts for this year's expansion have been revised up in recent months to around 1.8 per cent.