The German Retail Association maintained the nominal 2022 outlook of 3% sector growth, expecting a 2% contraction in the real term due to rising inflation.

Key details

“Blamed rising inflation and energy costs and poor consumer sentiment for the outlook.”

“Brick-and-mortar turnover would grow 1.4% in nominal terms and online retail 12.4%. Total turnover would hit 607.1 billion euros.”

"Rising inflation is massively affecting shoppers."

Market reaction

The above report accentuates concerns over a likely recession in the euro area, smashing EUR/USD to the weakest level in 20 years at 1.0301. The pair is down over 1% on the day.