FX.co ★ German Retail Sales Unexpectedly Fall

Germany’s retail sales fell by 0.6% month-on-month in February 2026, defying market expectations of a 0.2% increase and extending a revised 1.1% decline in January. Persistently high inflation and subdued consumer confidence continued to weigh on household spending. The overall contraction was largely driven by a 1.4% drop in food sales. By contrast, non-food sales rose 0.7%, and online and mail-order trade advanced 0.6%, indicating some resilience in discretionary and digital spending. On a yearly basis, retail trade expanded by 0.7%, slowing from a downwardly revised 1.0% increase in January.