GENERAL MERCHANDISE NEWS
German retail sales fall in September.
31 October, 2005 | by Retail Bulletin
German retail sales have fallen unexpectedly for the third time in four months in September.
Sales, adjusted for inflation and seasonal swings, dropped 1.6 percent from August, when they rose 0.1 percent. From a year ago, sales fell 0.7 percent after a 2.4 percent increasing in August. A 40 percent surge in oil prices this year has eroded German consumers’ purchasing power and companies including DaimlerChrysler AG are cutting jobs. Adding to households’ concerns about their income, chancellor-designate Angela Merkel pledged in her election campaign to raise value-added tax to fund a reduction in labor costs.
