March Retail Sales in Germany: A Mixed Bag

In a revealing update from Germany's statistical office Destatis, the retail trade sector displayed a notable 2.2% increase in real terms for March compared to the previous year, after adjusting for calendar and seasonal effects. However, the month-on-month comparison tells a different story, with a slight 0.2% decline in turnover.

Nominal vs. Real Terms: Understanding the Difference

When examining the figures in nominal terms, the scenario shifts. Retail sales experienced a 2.1% drop from the previous month and a modest 0.5% decrease year-on-year in March, highlighting the impact of price adjustments on retail performance.

Food vs. Non-Food Retail: Diverging Paths

The food retail sector enjoyed a 0.3% monthly and 0.5% annual growth in real terms. Conversely, the non-food retail trade saw a 0.6% monthly decline but a significant 3.7% annual increase, underscoring the varied consumer demand across different retail segments.