German retail sales rose sharply in June

According to provisional results of the Federal Statistical Office (Destatis), the real (price-adjusted) turnover of all retail enterprises in Germany was 4.2% higher and the nominal (not price-adjusted) turnover was 4.6% higher, on a calendar and seasonally adjusted basis, in June 2021 than in May 2021. Economists had expected a 2.0% increase (price-adjusted).

This development is probably due to the continuing decline of the coronavirus incidence in all of Germany and, consequently, the easing of restrictions provided for by the federal emergency brake that was applicable until 30 June 2021.

Compared to the pre - crisis month of February 2020, sales in June 2021 were 9.1% higher in real terms on a calendar and seasonally adjusted basis. Compared to June 2020, retail sales increased by 6.2% in real terms and 8.2% in nominal terms in June 2021. However, June 2021 had one more sales day than June 2020 with 26 sales days.

The retail sale of food, beverages and tobacco products in June 2021 was down 3.9% in real terms on May 2021, calendar - adjusted and seasonally adjusted. There were significant increases in the retail trade with non-food products. Real sales in June 2021 were 8.7% higher on a calendar and seasonally adjusted basis than in the previous month. The Internet and mail order business recorded a real, calendar - and seasonally-adjusted decline in sales of 7.5% compared to the previous month.