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German retailers not expecting major boost from Christmas sales -Ifo

FILE PHOTO: People carry their shopping bags in downtown Hamburg

BERLIN (Reuters) - German retailers are not expecting a strong boost from Christmas sales this year as weak demand continues to weigh heavily on business, according to a survey by the Ifo economic institute.

Sentiment among German retailers had improved for the first time in three months in November, rising to -8.8 points from -13.5 in October, according to the results released on Tuesday.

"Despite the slightly improved mood among retailers, demand, which has been weak all year, remains a challenge even in the period of strong sales during the run-up to Christmas," said Ifo retail expert Patrick Hoeppner.

Expectations in the sector for the coming months also remain pessimistic, according to Ifo.

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However, easing inflation could provide new momentum for retailers in the coming year: "As with the economy as a whole, price increases in the retail sector are likely to continue to weaken in the coming months," said Hoeppner.

(Reporting by Rene Wagner; Writing by Miranda Murray; Editing by Andrew Heavens)