By Joshua Kirby
Retail sales in the eurozone fell more slowly in September, suggesting easing price rises are boosting spending power in the 20-member union.
Trade was 0.3% lower on month, data from European Union statistics body Eurostat showed Wednesday. This was slightly worse than the 0.2% drop forecast by economists in a poll by The Wall Street Journal, but against a higher base as August’s figure was revised to a 0.7% decline, from a 1.2% fall previously. Sales have stagnated or declined steadily since January, the last month that saw a monthly rise.
The slower pace of decline suggests less virulent price inflation is taking the pressure off eurozone shoppers’ wallets. Prices rose 4.3% in September from more than 5% a month before, and inflation continued to drop markedly in October. Further recovery in retail trade–especially over the key Christmas shopping season–could offer some assistance to an eurozone economy hit by lagging demand and weak production, and which could be in for a slight recession over the winter.
Sales of food, drink and tobacco reversed the previous month’s drop in September, rising 1.4%. Fuel sales conversely declined on month, as did e-commerce sales, the figures showed. Compared with a year earlier, sales were 2.9% lower overall.
Performance across the bloc’s major economies was mixed, with Germany, Italy and the Netherlands all booking declining trade, while France and Spain reported minor increases.
Write to Joshua Kirby at [email protected]; @joshualeokirby
Read the full article here
