In the German retail sector, business was somewhat better again in September. Compared to August, price-adjusted sales increased by 0.9 percent, as reported by the Federal Statistical Office today. Including the price increases, dealers had 1.8 percent more in their tills. This also takes seasonal and calendar effects into account.
The German Retail Association (HDE) nevertheless sees consumer sentiment at a low point. “The retail trade grew in September due to higher prices. In particular, the higher costs in procurement and logistics as well as the sharp rise in energy costs are reflected in the higher nominal sales,” explained Managing Director Stefan Genth in Berlin.
Compared to the same month last year, real retail business fell slightly by 0.9 percent, but with the strong price increases, business recorded growth of 9.9 percent over the year, as reported by the Federal Office. In the retail trade with textiles, clothing and shoes, real revenues were 11.8 percent higher than in the weak September 2021.
Presumably because of the high prices, consumers held back in the grocery stores. After the weakest real turnover since 2017 was measured in August, there was a catch-up movement in September with an increase of 2.6 percent, according to the Federal Office. Compared to the same month last year, however, real sales were 2.4 percent lower.
“Consumers are currently holding back when it comes to consumption,” explained Genth. Consumer sentiment is still at a low point and the environment will remain difficult in the coming months. “It is therefore important to counteract the high energy prices quickly with targeted measures for companies and consumers.”
Economist: The money was “loose”
Chief economist Thomas Gitzel from VP Bank in Liechtenstein, on the other hand, described the retail sales as a “huge surprise”. “In September the money was easy – despite high inflation rates,” commented Gitzel.
Gas stations, on the other hand, recorded a slump. Here, the Federal Office reported the strongest decline in real sales since the start of the time series in 1994, at 15.7 percent in a monthly comparison. September was the first month after the tank discount expired.
