FX.co ★ German Retail Sales Slide 3.4%, Defy Forecasts

Germany’s retail sales fell 3.4% month-on-month in July 2026, following an upwardly revised flat reading in June and defying market expectations for a 0.4% increase. This was the sharpest monthly decline since July 2021. By category, food sales slipped 0.8%, while non-food sales dropped 4.8%. Online and mail-order volumes also contracted by 5.6%, indicating weaker e-commerce demand. On a year-on-year basis, retail sales decreased 2.5%, reversing an upwardly revised 0.6% gain in June and marking the steepest annual decline since September 2023.