FX.co ★ German Retail Sales Unexpectedly Fall

In August 2025, Germany experienced a 0.2% decline in retail sales from the previous month, contrary to market expectations of a 0.5% increase. This follows a downward revision of the previous month's sales, which also saw a 0.5% decrease. This represents the fourth monthly decline observed this year, primarily driven by a 1.0% reduction in non-food sales and a significant 3.8% decrease in the online and mail-order sectors, although food sales saw a 0.6% increase. On a year-over-year basis, retail sales rose by 1.8%, a slowdown from July's 2.9% growth, marking the most sluggish annual pace in the past 13 months. This deceleration is attributed to weaker spending in food, which offset gains made in non-food, online, and mail-order categories.