German retail sales rose in August, indicating that a recovery in Europe's largest economy is gathering pace.
The Federal Statistics Office in Wiesbaden said today that sales expanded by 0.5% in August on a month-on-month basis in price, calendar and seasonally adjusted terms.
However, economists had previously predicted an increase of 0.8%. The improvement came on the back of a 0.2% contraction in July and an even bigger 1.1% setback in June.
Business also improved for retailers in a year-on-year comparison, with sales showing a modestly adjusted 0.3% increase in August compared with the results recorded in the same month a year earlier.
The Bundesbank said last week that Germany's economy is being boosted by an "extraordinarily good" consumer climate.
Strong business was reported in the food and beverages sectors as well as the tobacco, shoes, clothing and leatherwear segments.
Economic growth of 0.7% in the second quarter and a jobless rate near a two-decade low helped propel Chancellor Angela Merkel's Christian Democrats to win September 22 elections, setting her up for a third term as leader.
The Bundesbank predicts GDP will increase 0.3% this year and 1.5% in 2014.
