German retail sales unexpectedly rose in November

German retail sales rose 1.9% in November against expectations of 2% contraction, with strong growth in online sales and spending on home improvements, being the main contributors.

November’s data also relate to a period when Germany was in partial lockdown, as measures to contain surging coronavirus infections were tightened in mid-December.

Solid November’s figures indicate that consumers spent their way through the broader economic damage caused by Covid-19 pandemic, contributing to expectations for 4% growth in retail sales during 2020.

Due to partial lockdown, online and delivery retail boomed in November, rising 31.8% compared to the same period year ago, the second-best performers were sales in household appliances and building materials, which rose 15.4%, while sales from supermarkets and food and tobacco grew modestly.

On the other side, restrictions hurt clothing sales which fell 20% and mixed retail which was down 6.1% in November.