Friday’s data therefore cast a shadow over the outlook for consumption in the third quarter.

Retail sales fell 1.5 percent from the previous month, while analysts surveyed had expected a decline of 0.4 percent.

Vistesen added that German retail sales slowed steadily this year, following strong growth at the end of last year.

The German economy contracted 0.3 percent in the second quarter, further reducing expectations of a sustained recovery.

While foreign demand is undoubtedly under pressure due to U.S. tariffs, there was still some hope that private consumers will drive an increase in demand.

This view from Hamburg Commercial Bank chief economist Cyrus de la Rubia added to the view that wages are rising again and inflation is low, so there should be scope for increased spending.

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