Germany: Retail sales fall 1.1% in June, the worst drop in a year
WHAT HAPPENED
Retail sales in Germany fell 1.1% in June compared to May, nearly three times what was expected. It was their worst monthly drop since May 2025, after rising 1.2% in May.
WHY IT MATTERS
Germany is the largest European economy. Less spending suggests caution from families and first hits clothing, appliances, and shopping centers; then, manufacturers and distributors that sell to them.
AND FOR YOUR PORTFOLIO
For a long-term portfolio, one month does not confirm a trend. But if lower consumption continues, it could reduce the revenues of retail companies and their suppliers in Europe, even though the eurozone grew 0.4% in the quarter.
💬 TELL IT LIKE THIS
“Europe grew, but the German consumer hit the brakes: for every 1,000 euros spent in May, they spent about 989 in June.”