German retail sales rose less than expected in April, growing 0.6 per cent on a monthly basis, preliminary data from the Federal Statistics Office showed today.

On an annual basis, the notoriously volatile indicator showed an increase of 3.6 per cent in real terms. Economists had been expecting a 1.8 per cent increase month-on-month and a 0.1 per cent drop year-on-year.

Low unemployment and solid wage increases are expected to support German consumption in 2011, but signs have emerged that inflation could weigh on morale in the coming months.

Reuters