German retail sales rose slightly in September, new data has shown, suggesting that private consumption is losing steam in Europe's largest economy.
Retail sales were up by 0.1% on the month in real terms after a revised 0.1% drop the previous month, data from the Federal Statistics Office showed.
On the year, retail sales rose by 3.4% in September after a revised 3.1% rise in August, the data showed. Retail sales are a volatile indicator often subject to revision.
The retail data comes after a survey published last week showed that the mood among German consumers sank to its lowest in three years, dragged by shopper's employment concerns as Germany is expected to dip into recession in the third quarter.
Consumer Index
Elsewhere, the latest consumer index published by CreditPlus Bank suggests a growing economic regression in Germany.
"Currently, the motor for economic growth is spluttering," commented Belgin Rudack, CEO of CreditPlus Bank.
"Because consumers are wary of economic difficulties in the future, they are spending less money. If the private demand for goods goes through a crisis, the internal economy will weaken," she added.
On the whole, however, the German economy is still running strongly: 74% of respondents said that they expect to improve their economic status in the next few months.
Some 40% of respondents can draw on savings of more than €2,500, the study found.
Nevertheless, approximately half of households are open to taking a loan if necessary, to pay for more expensive items. This has inter alia to do with the current low interest rates, Rudack explained.
News by Reuters, edited by ESM. Additional reporting by Martin Maier. Click subscribe to sign up to ESM: European Supermarket Magazine.
