German retail sales fall 2% in September and are below expectations

German retail lost steam in September. According to InfoMoney, sales fell 2% compared to August, a result below the projection of analysts consulted, who pointed to an increase of 0.3% in the month.

The data was published on Monday, the 2nd, and is sourced from Destatis, the German statistics office. The publication was released by InfoMoney, which recorded performance below market expectations.

For those who follow the European economy, family consumption is a relevant thermometer, because it indicates whether the population's income and confidence are supporting activity. When retail sales decline, the reading usually goes beyond the shelves and reaches expectations for the country's growth.

In the annual comparison, in real terms, the drop reached 2.3% in September, according to the same source. The number reinforces the perception of weak domestic demand, even though a single month does not allow us to talk about a trend.

In an economy that depends on foreign trade and predictability for companies and consumers, domestic consumption works as a sign of confidence. A month below expectations deserves attention, but does not end the debate about German performance.

What is at stake now is knowing whether the weakness is punctual or whether it takes on the shape of a trend, something that only future readings will be able to indicate.

What changes for the investor

For those who invest in the stock market, the data could weigh on European companies linked to consumption, especially retail, if the decline is repeated in the coming months. Negative surprises in activity indicators can also change bets on interest rates and exchange rates, which makes this a time for careful monitoring, without this representing a price forecast or a signal to buy or sell.

Automatically translated from Portuguese.