BERLIN, Nov 11 (Reuters) - Germany's retail sector is set for stagnation at best next year as households hold down their spending in the face of recession, the HDE industry association said on Tuesday.
"If we had a stagnation (in sales) in nominal terms next year, that would even be a success," HDE President Josef Sanktjohanser told a trade congress in Berlin.
Households' spending intentions are crucial to the performance of the German economy as private consumption accounts for over half of gross domestic product (GDP).
German retail sales suffered their biggest drop for nearly two years in September, figures released late last month showed, fuelling worries that Europe's biggest economy has entered recession.
A government official told Reuters late last month the economy probably contracted by 0.25 percent in the third quarter, which would spell a recession. Official GDP figures for the July-September period are due on Thursday. (Reporting by Klaus Lauer, writing by Paul Carrel)