Surprise fall in eurozone retail sales
By Pan Pylas |
January 7, 2011, Friday
|
Print Edition
Print Edition
RETAIL sales in the 16 countries that used the euro in November unexpectedly fell, official figures showed yesterday, in another sign that consumers remain reluctant to spend amid ongoing worries about the level of debt in several countries.
Eurostat, the European Union's statistics office, said yesterday that eurozone retail sales fell 0.8 percent in November from the previous month, and revised down its estimate for spending in October. Now it thinks that retail sales were stagnant during the month instead of its previous prediction of 0.5 percent rise.
November's sizable fall was unexpected - the expectation was that retail sales would rise, by a modest 0.2 percent. It also meant that the annual increase slipped to 0.1 percent in November from the previous month's 1.2 percent.
The failure of consumers to lift spending could be a cause for concern - analysts think consumers will have to take up the slack left by tough government austerity measures, if the recovery in the eurozone is to continue.
"A 0.8 percent fall is a disappointment but not altogether surprising given the situation in the region's periphery, where consumer spending is being hit by high unemployment, disappointing economic performance and austerity policies," said Chris Williamson, chief economist at Markit, a financial information company.
The government debt crisis was particularly acute during November, when Ireland eventually had to request a bailout from its partners in the EU and the International Monetary Fund.
Luckily for the eurozone, the industrial sector, particularly in export-strong Germany, is continuing to prosper in a world of rebounding trade volumes.
The euro, which is now used by 17 nations after its adoption by Estonia at the start of the year, was little changed after the data, trading just above US$1.31.
Eurostat, the European Union's statistics office, said yesterday that eurozone retail sales fell 0.8 percent in November from the previous month, and revised down its estimate for spending in October. Now it thinks that retail sales were stagnant during the month instead of its previous prediction of 0.5 percent rise.
November's sizable fall was unexpected - the expectation was that retail sales would rise, by a modest 0.2 percent. It also meant that the annual increase slipped to 0.1 percent in November from the previous month's 1.2 percent.
The failure of consumers to lift spending could be a cause for concern - analysts think consumers will have to take up the slack left by tough government austerity measures, if the recovery in the eurozone is to continue.
"A 0.8 percent fall is a disappointment but not altogether surprising given the situation in the region's periphery, where consumer spending is being hit by high unemployment, disappointing economic performance and austerity policies," said Chris Williamson, chief economist at Markit, a financial information company.
The government debt crisis was particularly acute during November, when Ireland eventually had to request a bailout from its partners in the EU and the International Monetary Fund.
Luckily for the eurozone, the industrial sector, particularly in export-strong Germany, is continuing to prosper in a world of rebounding trade volumes.
The euro, which is now used by 17 nations after its adoption by Estonia at the start of the year, was little changed after the data, trading just above US$1.31.
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