FRANKFURT--German retail sales rose less than expected in
December, but the annual figures suggest that consumption continued
to act as a pillar to economic growth in the final quarter of last
year.
Retail sales in December rose 0.2% in calendar- and
inflation-adjusted terms compared with November, the Federal
Statistics Office said Friday. Economists in a Wall Street Journal
survey predicted a rise of 0.5%.
Compared with the year-earlier month, however, retail sales were
4.0% higher--the highest expansion since June 2013--although
Destatis noted there was one more shopping day in December 2014
than the comparable period in 2013.
For the full year, retail sales grew 1.4% in price-adjusted
terms, Destatis said.
German retail sales are a volatile indicator, however, and are
prone to large revisions.
The most recent consumer-confidence survey indicate a promising
start to the year for retail sales in Europe's largest economy.
Market research group GfK said earlier this week that consumer
confidence is set to strengthen in February, taking its cues from
low energy prices, which allow more room for other expenditures.
The forward-looking confidence indicator is set to reach a 13-year
high of 9.3 points in February from 9.0 points in January.
The stabilization of the German economy toward the end of last
year played an important role in further improving consumer
sentiment. Destatis said in mid-January that growth accelerated in
2014, with a price-adjusted gross domestic product expansion of
1.5%, compared with growth of 0.1% the previous year.
Write to Emese Bartha at emese.bartha@wsj.com
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