MNI: GERMAN DATA: Retail Sales (May 2019) Preview....>

MNI: GERMAN DATA: Retail Sales (May 2019) Preview - 07:00 BST

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- Bloomberg Consensus: 0.5% m/m, 2.7% y/y; MNI Median: 0.7% m/m, 2.7% y/y

- Previous (Apr): -2.0% m/m, -4.0% y/y

- German retail sales got off to a weak start in Q2, falling by 2.0% m/m - the

first drop so far this year

- While annual growth rose to an impressive 4.0% in Apr, the increase was

largely due to the later timing of Easter this year

- Markets look for sales to have rebounded slightly on the month in May...

- ... but for the annual rate to moderate

- HH consumption, which increased by 1.2% q/q in Q1, was a key driver of the

0.4% q/q overall GDP expansion 

- With low unemployment, higher real wages & weak inflation, consumer spending

should remain a pillar of support for the economy this year

- But in an environment of still-elevated uncertainty, consumers are likely to

save at least some of their increased disposable income