By Maria Martínez
(Reuters) -German retail sales fell more than expected in October, falling 1.5% from the previous month, data showed on Friday.
Analysts polled by Reuters had forecast a decline of 0.3%.
Retail sales in the euro zone’s largest economy fell significantly, partially offsetting gains in the third quarter.
“This is a disappointing headline, but it is not necessarily decisive for the fourth quarter as a whole given the solid carryover of the third quarter gain,” said Claus Vistesen, chief euro zone economist at Pantheon Macroeconomics.
Consumer spending will continue to grow in the fourth quarter, Vistesen said. “Although unfortunately for GDP growth as a whole, inventories are likely to be a major drag,” he added.
Compared to the same month last year, retail sales increased by 1.0% in real terms.
Food sales rose 0.1% month on month, while non-food sales fell 2.2% in October, data from the statistics agency showed.
After two consecutive years of contraction, German economic growth is expected to resume in 2025, mainly due to increased private consumption due to higher wages, falling inflation and tax cuts, the government said in its forecasts.
(Reporting by Elizaveta Gladun in Gdansk and Maria Martinez in Berlin; Editing by Daren Butler)
