German retail sales plunged far more than expected in December as a decision to tighten lockdown measures in the Covid-19 pandemic choked consumer spending in Europe’s largest economy, data showed.

The Federal Statistics Office said retail sales fell 9.6 per cent in the month in real terms after an downwardly revised increase of 1.1pc in November. The December reading undershot a Reuters forecast for a drop of 2.6pc.

Still, retail sales rose 3.9pc in the year in real terms in the full year of 2020 despite the pandemic, the office said. That was slightly below a previous estimate of 4.1pc.