The downward trend in German retail sales that began in late 2003 continues. In September, the headline series--the value of retail sales excluding autos and gas stations--declined 0.41% from August and was 1.93% below September, 2003. Including autos and gas stations, the comparable figures were 0.20% and 2.39%.

In volume terms, retail sales, excluding autos and gas stations, declined 0.41% in September from August and were 1.93% below September 2003. The comparable figures for the volume of retail sales including autos and gas stations were 0.10% and 2.79%.

The rise in oil prices during this year has, no doubt, affected purchasing power adversely, but rising unemployment and reduction in welfare benefits associated with Chancellor Schroeder's reform program, Agenda 2010, have also played a significant role in reducing purchasing power and in lowering the propensity to consume.