German retail sales in June were in nominal terms down 1.1% and in real terms fell 0.9% on May 2010 while the rise in earnings subject to collective bargaining slowed.

Destatis, the federal statistics office, said retail turnover in June 2010 increased 3.8% in nominal terms and 3.1% in real terms compared with the corresponding month in the previous year. The number of days open for sale was 26 in June 2010 and 25 in June 2009.

Destatis also reported that the overall development of agreed earnings has slowed down. In April 2010, the agreed monthly earnings of employees in Germany increased by 1.9% compared with April 2009, a smaller rise than in January 2010 (+2.3%) and than the annual average in 2009 (+2.8% compared with the annual average in 2008).

The slower development of agreed earnings is mainly due to the fact that the long-term, step-by-step agreements with unions that provided for high pay rises and were concluded in a different economic situation, are now expiring. Apart from that, many of the collective pay rises agreed in the reporting period were significantly lower than in the previous year.

Destatis also reported that the turnover in the wholesale trade in Germany in the 2nd quarter 2010 increased 12.2% in nominal terms and 7.1% in real terms compared with the 2nd quarter 2009.