German retail sales jumped by the largest amount in seven years in January, data from the Federal Statistics Office showed on Tuesday, fueling expectations that private consumption will propel growth in Europe's largest economy this year.
Retail sales, a notoriously volatile indicator, climbed by 2.9% on the month in real terms, its sharpest increase since January 2008. That was stronger than the 0.4% forecast in a Reuters poll and exceeded even the highest estimate for a 1.1% gain.
On the year, retail sales leaped by 5.3% on the year in real terms, their biggest increase since June 2010, as shoppers spent more online and in shops on items such as food, books, jewelry and cosmetic products.
That was far stronger than the Reuters forecast for a 2.7% rise and beat even the highest estimate for a 4% increase.
German consumer morale is at its highest level in more than 13 years as shoppers benefit from record employment and higher pay.
Negotiated wages including special payments climbed by 3.2% last year, the biggest increase since the statistics were first compiled in 2010, and Germany's biggest trade union, IG Metall, has secured an inflation-busting 3.4% hike.
