BERLIN: German retail sales soared for a 5th consecutive year in 2014, rising by 1.4% in real terms, reflecting the confidence of consumers in Europe’s largest economy. In December, German retail sales rose by 0.2% on the month in real terms after climbing strongly in October and November.
German consumer morale held up well last year as shoppers benefited from a robust labour market, rising wages and low inflation.
Private consumption helped drive a 1.5% increase in gross domestic product last year.
German retail sales posted their biggest yearly increase in two and a half years in December, climbing by 4%. That was helped by an extra shopping day compared with the same month in 2013.
The indicator is notoriously volatile, however, and figures are often revised the following month. Private consumption is expected to boost growth this year too, especially as consumers benefit from cheaper oil.
Earlier this week, a survey showed sentiment among shoppers surging to its highest level in more than 13 years heading into February as lower oil prices meant consumers in Europe’s largest economy had more spare cash.
Data yesteday also showed that Spanish retail sales jumped by 6.5% year-on-year in December, the biggest increase since 2003, as falling oil prices and an improving economic outlook encouraged Spaniards to spend.
