BERLIN (dpa-AFX) - German unemployment continued its declining trend in March and the jobless rate fell to a record low, while retail sales rose for a second month unexpectedly, signaling that household consumption will be the growth driver this year as export demand weakens amid a global economic slowdown.
The seasonally adjusted unemployment decreased by 7,000 persons, data from the Federal Employment Agency showed on Friday. Economists had forecast a fall of 10,000.
January's decline was revised to 20,000 from 21,000.
The seasonally adjusted jobless rate dropped to a German reunification-low of 4.9 percent from 5 percent, where it was since November. The easing was in line with economists' expectations.
The non-seasonally adjusted unemployment figure eased to 2.301 million from 2.373 million in February.
Earlier on Friday, the Federal Statistical Office reported on Friday that the ILO jobless rate fell to 3.1 percent in February from 3.2 percent in January.
Retail sales rose for a second straight month in February, defying expectations for a decline, preliminary data from the Federal Statistical Office showed earlier on Friday.
Retail sales grew 0.9 percent month-on-month in real terms, which was in contrast to economists' prediction for a 0.9 percent fall. The pace of growth was the weakest in four months.
January's gain was revised to 2.8 percent from 3.30 percent. In December, sales decreased 3 percent.
On a year-on-year basis, retail sales grew 4.7 percent in February, which was much bigger than the 2.2 percent gain economists had forecast.
A resilient labor market boost hopes that household consumption could underpin growth in the biggest euro area economy this year.
'The labor market remains the best possible insurance against recession fears, even though very tentative signs of a cooling have emerged,' ING economist Carsten Brzeski said.
Meanwhile, the latest GfK survey showed this week that Germany's consumer confidence is set to slightly weaken in April, driven by some easing in households' income expectations and the propensity to buy, after a buoyant start to the year.
The Nuremberg-based market research group GfK expects consumption to remain an important pillar of economic growth in Germany this year too, if the uncertainty caused by Brexit and the trade conflict does not worsen further.
Further, the GfK said any encroachment of the uncertainty on job market expectations should be avoided.
The GfK has forecast 1.5 percent growth in household consumption this year.
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