Euro zone retail sales grew less than expected in November, confirming that consumption remains in the doldrums and adding to a recent string of gloomy data about the health of the currency bloc’s economy.
Reuters
Retail sales in the 20 nations sharing the euro grew by 0.1% in November compared to the previous month, falling short of expectations for 0.4% in a Reuters poll and making up just a fraction of the previous month’s 0.3% drop, data from Eurostat showed on Thursday.
Compared to the same month a year ago, retail sales grew by 1.2%, with the rate staying on a downward trajectory for the second month in a row.
The euro zone economy has been skirting recession for the past year, partly because consumers are choosing to save their cash and rebuild wealth lost to rapid inflation in the past three years.
While policymakers have long bet on a rise in consumption driving the recovery, they have been disappointed month after month, and a notable softening in the labour market could encourage even more precautionary saving.
Food and fuel sales accounted for all the monthly growth while non-food item sales dropped by 0.6%, adding to a similar fall a month earlier.
Among the bloc’s biggest countries Germany and Spain recorded sizable monthly drops in retail sales, offset by better performances elsewhere.
