German retail sales post strong increase in H1

Retail sales in Germany increased strongly in the first half of 2015, official data showed on Friday, adding signals that private consumption would boost German economic growth in current year.

Compared with the same period of previous year, retail sales in Germany rose by 2.5 percent in real terms during the first six months of 2015, German federal statistical office Destatis said.

German consumers purchased more books, jewelry, cosmetic, medicines and other products, data from Destatis showed. In June, retail sales also surged by 5.1 percent year on year.

The readings strengthened economists' expectation that private consumption would continue to drive Europe's biggest economy as the main force in the current year.

A recent survey found that German consumers' buying mood remained at a high level despite turbulence abroad. A stable labour market and increasing wages were behind the optimism.

Falling energy prices, though not favored by European Central Bank which was struggling to lift the eurozone's inflation rate, also stimulated the consumption as households had more money available for other purchases.

German Economy Ministry said earlier this month that the German economy was in a solid upswing with private consumption as its "most important driving force".

In the first quarter, Germany's gross domestic product (GDP) increased mildly by 0.3 percent. Economists expected that the economy would expand at a faster pace during the three months from April to June. Endit