Berlin - Germany's retail sales posted a surprise fall of 1.5 per cent in August, data released Thursday showed.

Compared with the same month last year, August retail sales dropped 2.6 per cent in real terms, the Federal Statistical Office said amid growing concerns about the jobs outlook in Europe's biggest economy.

The latest data underscores the fragile state of the economic recovery in Germany.

Economists had expected Thursday's data to show retail sales declining by 0.8 per cent year on year in August and to increase by 0.2 per cent on the month.

Retail sales rose 0.7 per cent month on month in July fell by 0.8 per cent year on year in July. (dpa)