German retail sales up 2.8% in Jan/Feb on the year, HDE says

[BERLIN] German retail firms got off to a good start in 2016 with nominal sales rising by 2.8 per cent in the first two months of the year, the HDE retail association said on Tuesday, adding the sector is on track for 2 per cent sales growth for the whole year as forecast.

"The business environment for retail is favourable," said HDE Managing Director Stefan Genth. "The development on the labour market is positive, wages are rising and interest rates are low."

Private consumption was the main driver of economic growth in Germany in 2015 and it is expected to support Europe's biggest economy this year.

German consumers are benefiting from record-high employment and strong increases in real wages while cheap oil is also freeing up some of their cash for other purchases.

Data by the Federal Statistics office released in January showed nominal retail sales were up by 2.8 per cent on the year in 2015 while real retail sales were up by 2.7 per cent on the year.

HDE's figures can differ from official data released by the Federal Statistics Office as they include different branches within the retail sector.

REUTERS