Retailers in Germany boosted their sales in January after the fall in the previous month. This suggests that private consumption is supporting growth in Europe’s largest economy earlier this year.

Retail sales rose by 0.9% on a monthly basis after a decrease of 2.0% in the previous month, according to the data from the Federal Statistical Office. However, the indicator performs less than the expected increase of 1%.

On a year-on-year basis, retail sales in Germany increased by 1.8% in real terms after a 1.7% increase in December.

Retail sales of food, beverages, and tobacco in January 2020 increased in real terms by 1.0% and in nominal terms by 3.2% compared to January 2019. Real sales of supermarkets, hypermarkets, and markets increased by 0.9% in real terms and by 2.9% in nominal terms compared to the same month of the previous year. Accordingly, specialized grocery retail sales grew by 2.1% in real terms and 5.1% in nominal terms.

In January 2020, non-food retail sales were 2.2% higher in real terms and 2.8% higher in nominal terms compared to the same month of the previous year. The largest sales growth was achieved by the Internet and postal services business.

Figures show that household spending in Germany has remained stable, supported by record-high employment, solid wage increases and moderate inflation. However, analysts believe the coronary virus epidemic may weaken domestic demand in the coming weeks.

A study released last month showed that confidence among German consumers has worsened, as fears that a coronavirus could contribute to the country’s economic slowdown have made Germans less likely to spend.