German Retail Sales See Modest Growth in January 2025

Retail sales in Germany rose slightly at the start of the year, but growth fell short of economists' expectations amid broader economic concerns.

Retail sales in January 2025 increased by 0.2% compared to December 2024, adjusted for price changes and seasonal factors, according to preliminary data from the Federal Statistical Office.
Compared to January 2024, sales rose by 2.9% in real terms and 3.8% in nominal terms, reflecting a year-over-year improvement.
The Handelsverband Deutschland (HDE) forecasts a nominal retail sales increase of 2% for 2025, amounting to an estimated €677 billion in total revenue.
Economists note that the January growth was weaker than expected, citing concerns about job security as a potential drag on consumer spending throughout the year.
While retail sales showed slight improvement, the growth may not signal a strong recovery in private consumption for 2025, as analysts remain cautious about broader economic trends.