German shoppers retreat on rain

September 29, 2007 - 0:0

German retail sales fell by more than expected in August as unseasonably wet weather kept shoppers at home and hit sales of new clothing.

Retail sales fell 1.4 percent compared with July and dipped 2.2 percent from August 2006.
Consumption among German consumers is traditionally low and worries about inflation also encouraged them to save.
The Bundesbank's measure of retail sales that includes cars and petrol stations fell 0.1 percent from July and dropped 3.2 percent compared with August 2006.
""The rise in food and energy prices has had a very strong effect on consumers,"" said analyst Andreas Rees from Unicredit.
""By contrast, the significant improvement in the job market has not had much of an influence,"" he added.
Figures from the Federal Labour Office showed that unemployment had fallen to a 14-year low in September.
The German economy is disproportionately dependent on exports for growth and policymakers hope that falling unemployment may eventually lead to growth in spending.
(Source: BBC)