German Retail Sales Fall

        FRANKFURT--German retail sales fell in line with expectations in February, slightly reversing the solid expansion seen in the previous two months, while the annual reading suggests that consumer spending remains a key pillar of growth in Europe's largest economy.
        Retail sales in February fell by 0.5% in calendar- and seasonally-adjusted terms compared with January, the Federal Statistics said Tuesday. The figure was in line with forecasts from economists polled by The Wall Street Journal.
        On an annual basis, retail sales expanded by 3.6%, reaching the highest real growth in any February since 2000, the statistics office Destatis said.
        German retail sales indicators are volatile and prone to large revisions. Analysts tend to consider the monthly numbers with caution and look instead at three-month averages.
        The data comes on the heels of recently strong consumer confidence data. GfK market research group's monthly survey showed last week that German consumer confidence is set to improve further in April, buoyed by a weak euro and low energy costs, interpreted as supportive factors for the economy and for individuals" own circumstances. The forward-looking GfK consumer sentiment index was predicted to rise to 10.0 points in April from 9.7 points in March, its highest level since October 2001, and beating economists' forecast of a rise to 9.9 points.
        Rock-bottom interest rates, rising wages coupled with low inflation, and record high employment have also boosted consumer optimism.
        -Write to Emese Bartha at emese.bartha@wsj.com
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        (END) Dow Jones Newswires

        March 31, 2015 02:40 ET (06:40 GMT)

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