Berlin - German retail sales posted a bigger-than-forecast 0.7-per-cent rise in November, the nation's statistics office said Friday, as falling oil prices helped consumers in Europe's biggest economy to defy the growing global economic gloom.

Analysts had forecast a more modest 0.5 per cent month-on-month increase in retail sales during November.

But releasing the latest data, the statistics office revised down October retail sales to a month-on-month fall of 2.2 per cent from an initially reported 1.6-per-cent decline.

Germany's retailers have been cautiously optimistic about Christmas sales as falling inflation appeared to help encourage consumers to spend.

However, data released this week showing the first increase in German unemployment in nearly three years raises the prospects of a weaker labour market dampening private consumption in the coming months.

German car figures also released showed vehicle sales in Europe's biggest car market falling sharply last year as economic uncertainty took hold in the run-up to the end of the year.

Year-on-year retail sales in real terms dropped 3 per cent in November after falling 0.8 per cent in October. (dpa)