BERLIN, Sept 30 (Reuters) - German retail sales rose much more than expected in August, data showed on Wednesday, invigorating hopes that household spending in Europe's largest economy will power a strong recovery in the third quarter from the coronavirus shock.

Retail sales jumped by 3.1% on the month in real terms after an upwardly revised drop of 0.2% in July, data from the Federal Statistics Office showed. A Reuters forecast had predicted a 0.5% increase.

On the year, retail sales rose by 3.7% in real terms after an upwardly revised increase of 5.0% the previous month, the data showed.

Retail sales are a volatile indicator often subject to revision. (Reporting by Michael Nienaber; editing by Thomas Seythal)