Retail sales fall in eurozone countries
By Pan Pylas |
January 8, 2010, Friday
|
Print Edition
Print Edition
RETAIL sales in the 16 countries that use the euro unexpectedly fell in November, official figures showed yesterday, further denting hopes that consumer spending will help drive the region's economic recovery.
Figures from Eurostat, the EU's statistics office, showed that eurozone retail sales were down 1.2 percent from the previous month, in sharp contrast to the 0.2 percent increase recorded in October and analysts' expectations for another modest monthly rise.
Eurostat said the declines were in both the food and non-food sectors, with the latter down by a particularly sharp 1.6 percent during the month.
The figures reinforced expectations that the recovery from recession in the eurozone will be slow. So far, the modest economic growth being recorded has been largely due to a pick-up in global trade volumes, which has boosted exports, particularly in Germany, the single currency bloc's largest economy.
Figures to be released today are expected to confirm that the eurozone economy grew by 0.4 percent in the third quarter.
However, analysts say domestic demand will need to take a bigger role for the pace of recovery to accelerate.
Yesterday's figures suggest consumer spending in the October-December quarter is unlikely to be much better than the 0.2 percent quarterly decline reported in the previous three-month period.
"The hope is that German tax cuts, improving sentiment and early signs of stabilization in the labor market will prompt a pick-up this year, but the improvement looks set to be modest," said Jennifer McKeown, senior European economist at Capital Economics.
For the 27-country EU as a whole, which includes non-euro members such as Britain and Sweden, retail sales were down 0.8 percent in November, more than offsetting the 0.5 percent increase in October.
Meanwhile, the European Commission said economic sentiment in the eurozone improved further in December, with consumer and industrial confidence rising modestly.
Figures from Eurostat, the EU's statistics office, showed that eurozone retail sales were down 1.2 percent from the previous month, in sharp contrast to the 0.2 percent increase recorded in October and analysts' expectations for another modest monthly rise.
Eurostat said the declines were in both the food and non-food sectors, with the latter down by a particularly sharp 1.6 percent during the month.
The figures reinforced expectations that the recovery from recession in the eurozone will be slow. So far, the modest economic growth being recorded has been largely due to a pick-up in global trade volumes, which has boosted exports, particularly in Germany, the single currency bloc's largest economy.
Figures to be released today are expected to confirm that the eurozone economy grew by 0.4 percent in the third quarter.
However, analysts say domestic demand will need to take a bigger role for the pace of recovery to accelerate.
Yesterday's figures suggest consumer spending in the October-December quarter is unlikely to be much better than the 0.2 percent quarterly decline reported in the previous three-month period.
"The hope is that German tax cuts, improving sentiment and early signs of stabilization in the labor market will prompt a pick-up this year, but the improvement looks set to be modest," said Jennifer McKeown, senior European economist at Capital Economics.
For the 27-country EU as a whole, which includes non-euro members such as Britain and Sweden, retail sales were down 0.8 percent in November, more than offsetting the 0.5 percent increase in October.
Meanwhile, the European Commission said economic sentiment in the eurozone improved further in December, with consumer and industrial confidence rising modestly.
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