German retail sales up 2.3 percent in October

Preliminary data show German retail sales rose 2.3 percent on the month in October, indicating that consumer demand may be helping to drive an economic recovery that has so far depended on exports.

However, the month-on-month climb reported Wednesday followed an equal drop of 2.3 percent in September, the national statistics office said.

German retail data are frequently revised, but Alexander Koch of the UniCredit Group wrote in a research note that the strong rebound brings the figures "more in line with the trend in other consumer spending indicators."

Both consumer and business confidence in the retail sector have improved considerably over previous months, unlike other European countries, he said.