German retail sales rose more than expected last month, adding to signs of a recovery in Europe's biggest economy.
German retail sales rose 0.8 per cent in May over the previous month, beating expectations for a 0.4 per cent gain.
Retail sales fell 0.1 per cent in April 2013 over the previous month, the Federal Statistics Office said in a report on Friday.
German consumers are stepping up purchases as robust labour market conditions boost sentiment, leaving more room for discretionary spending.
The number of unemployed fell 12,000 to 2.94 million in June 2013 over the previous month as the jobless rate declined to the lowest level in two decades at 6.8 per cent this month, down from 6.9 per cent in May 2013.
Consumer sentiment in Germany is tipped to rise to the highest level in nearly six years next month. Low interest rates, and unemployment at near a two decade low, rising industrial wages and muted inflation have bolstered consumer sentiment in Germany.
The latest data is yet another evidence that the German economy is picking up momentum after growing only 0.1 per cent in Q1 2013 when bad weather hit construction activity.