German retail sales rose by the fastest rate in more than 20 years in the first half of this year.
A 2.5 per cent increase in retail spending was the largest recorded since the Federal Statistics Office commenced the survey back in 1994.
It underlines the view of economists that Germany’s economy is returning to solid growth, boosted by private consumption.
On an annualised basis, German retail sales rose 5.1 per cent with spending notably up on cosmetics, jewellery, books, textiles and medicines.
With record high levels of employment, negligible inflation and strong levels of consumer confidence, Germans are again spending – and they’re paying by cash rather than borrowing.
“Things have hardly ever been going better for Germans than right now,” Berenberg economist Holger Schmieding told Reuters.