German Retail Sales Drop Sharply in June, Exceeding Forecasts

Germany's retail sales fell by 1.1% in June compared to May, exceeding economists' forecast of a 0.5% drop, according to official data from Destatis.

The decline marks a reversal from May's revised 0.6% increase and underscores the ongoing weakness in consumer spending in Europe's largest economy.

The broad-based pullback in consumer purchases is attributed to high inflation and subdued wage growth, which continue to erode purchasing power.

Food, beverages, and tobacco sales fell by 1.2% month-on-month, while non-food items dropped by 0.9%, with online retail declining by 1.8% compared to May.