Berlin - German retail sales fell for the second consecutive month in July falling by a bigger-than-forecast 1.5 per cent amid concerns about high inflation and deepening economic uncertainty, data released Monday showed.

Analysts had expected monthly seasonally adjusted retail sales data, which was drawn up by the nation's statistics office, to drop by a more modest 0.3 per cent in July. On a yearly basis, retail sales in Europe's biggest economy were unchanged.

The July fall in retail sales was despite a continuing improvement in the German labour market.

However, German consumer confidence fell to the lowest level in more than five years in September, a key forward-looking survey released. (dpa)