German retail sales inch up in December

• Retail sales increased 0.1% month-over-month in December, missing the 0.2% forecast by Reuters-polled analysts
• The underwhelming growth reflects ongoing challenges in German consumer demand and economic activity
• Data was released by Germany's federal statistics office on February 2, 2026

Summary: German Retail Sales Inch Up in December

German retail sales posted a modest increase of 0.1% month-over-month in December, falling slightly short of market expectations, according to data released Monday by the federal statistics office.

Key Figures:

• Monthly increase: 0.1% (December vs. November)
• Analyst consensus: 0.2% increase expected
• Miss: 0.1 percentage point below forecasts

Market Implications:

The underwhelming retail sales figure suggests continued weakness in German consumer spending, which represents a critical component of Europe's largest economy. The data point indicates that household consumption remains subdued despite broader economic recovery efforts across the eurozone.

The marginal growth reflects ongoing challenges facing German consumers, including persistent inflationary pressures and economic uncertainty. This tepid performance in the retail sector could influence European Central Bank policy considerations and raises questions about the strength of domestic demand heading into 2026.

Context:

Germany's retail sector serves as a key barometer for consumer confidence and economic health in the eurozone. The slight miss against expectations, while not dramatic, adds to concerns about the pace of economic recovery in Germany and potential spillover effects across European markets.

The federal statistics office is expected to publish additional details providing further breakdown of the retail sales data, which may offer more insights into specific sectors and categories driving or dragging overall performance.

This data comes amid broader European economic discussions, including challenges with the region's €955 billion recovery fund implementation, as noted in related Reuters coverage.