By Maria Martinez
(Reuters) - German retail sales unexpectedly rose in September, extending an upward trend started in June, although growing at a slower pace.
Retail sales increased by 1.2% compared with the previous month, data from the statistics office showed on Thursday.
Analysts polled by Reuters had predicted a 0.5% decrease.
The economy expanded by 0.2% in the third quarter from the previous three months, driven by government and household spending, preliminary data from the federal statistics office showed on Wednesday.
September's data and the business climate index among retailers in October suggest that retail sales continued to be a growth driver into the last quarter of the year.
The Ifo business climate index in German retail improved a little in October, according to the latest surveys.
Retailers assess their current situation as slightly better. However, business expectations for the coming months remain virtually unchanged at a low level, the Ifo survey showed.