FX.co ★ German Retail Sales Fall More than Estimeted

Germany’s retail sales fell 0.9% month-on-month in January 2025, a sharper decline than the 0.2% drop expected by markets and a reversal from the upwardly revised 1.2% increase recorded in December. The downturn was driven mainly by a 1.7% decrease in non-food sales, indicating that households became more cautious at the start of the year. Food sales were unchanged, pointing to stable demand for basic necessities, while online and mail-order sales rose 2.5%, underscoring continued resilience in e-commerce despite broader sector weakness. On a yearly basis, retail trade increased 1.2%, down from an upwardly revised 2.5% rise in December, which had been the strongest annual growth rate in five months. For 2025 as a whole, retail sales were 2.7% higher.