German June retail sales unexpectedly declined 1.8% m/m, adn 1.6% y/y. We had been looking for a rise of 0.3% m/m and our median was 0.4% m/m, so much weaker than expected numbers, especially as May data were revised down to -1.3% m/m and -3.7% y/y, from 0.4% m/m and -2.9% y/y reported previously. Revised figures show sales unchanged q/q in Q2, which is an improvement from the 0.8% q/q contraction reported in Q1, but still disappointing considering that data initially pointed to a rise in sales over the quarter. Data will then, support expectations for an improvement in Q2 GDP growth from the dismal Q1 figure, but also highlight that economic activity remains weak.
