By Geoffrey Smith
Investing.com -- German retail sales slumped in October, setting an ominous tone for a fourth quarter in which Europe’s largest economy is widely expected to shrink.
Sales fell 2.8% in inflation-adjusted terms, and were even down 1.7% in absolute terms, from September, as consumers reduced their outlays on non-essential items in particular in the face of surging fuel bills.
Non-food sales fell a thumping 4.5% from September and were down 5.5% from a year earlier, while food sales were down 1.2% on the month and 3.9% on the year.
That reinforces a trend that has been in place all year, as the distortion to spending patterns caused by the pandemic slowly unwinds.
E-commerce sales, which had thrived during two years of on-and-off lockdowns, fell 1.8% on the month and 7.1% on the year. However, they remained over 27% higher than their pre-pandemic level, suggesting that the migration to online shopping has at least partially stuck.