BERLIN (Reuters) - German retail sales showed the biggest drop in seven years in May, falling well below expected levels and fuelling concerns about growth in Europe’s biggest economy amid growing trade and political concerns.
Germany’s central bank slashed its growth forecast for this year to 2.0 percent earlier this month, from 2.5 percent it forecast in December.
Retail sales, a volatile indicator that is often subject to revision, dropped by 2.1 percent on the month in May in real terms, the Federal Statistics Office said.
Analysts polled by Reuters had forecast a drop of 0.5 percent.
On the year, retail sales dropped 1.6 percent, a wide swing from the 1.8 percent growth in the Reuters consensus forecast.
Reporting by Andrea Shalal; Editing by Catherine Evans