Germany’s Retail Sales Rebound in August, Below Expectations

• German retail sales rose 1.3% in August, recovering from July’s slump.
• The monthly growth was below market expectations.
• The Euro (EUR) experienced a slight positive reaction.

German retail sales registered a 1.3% month-on-month increase in August, according to official data, marking a recovery from the -3.4% contraction observed in July. This rebound, however, fell short of market expectations. On an annualized basis, sales declined by 0.4% in August, a slower pace compared to the previous month’s decrease. The recovery was supported by gains in food and non-food product sales, alongside a notable 3.7% rise in online and mail-order sales, while petrol station sales remained unchanged. Following the release, the Euro (EUR) saw a modest uptick, with the EUR/USD pair rising slightly.