European Retail Sales May Have Put In A Negative Q1
It appears that barring a sharp reversal in March, Europe will have had to rely largely on export-driven growth in the first quarter to have avoided double dip recession, as retail sales shocked with worsening back-to-back declines in both January and February. Even before this report, the OECD had already stated that they believed Germany, Europe's largest economy, fell back into recession over the last two quarters.
Bloomberg
European Retail Sales Decline Most in Nine Months
European retail sales declined the most in nine months in February as rising unemployment prompted consumers to cut back spending.
Sales in the 16-nation euro region fell 0.6 percent from January, when they decreased 0.2 percent, the European Union’s statistics office in Luxembourg said today. That’s the biggest drop since May 2009. Economists forecast sales to remain unchanged, the median of 15 estimates in a Bloomberg News survey showed. From the year-earlier month, February retail sales declined 1.1 percent.
Euro-area companies may have to rely on exports to bolster sales as a double-digit jobless rate and increasing energy costs erode consumer confidence. Europe’s manufacturing growth accelerated in March and investor confidence rose this month. Henkel AG, the German maker of Loctite glues, said last month that it aims to boost sales in faster-growing emerging markets.
“Consumption will remain a burden to growth,” said Andreas Scheuerle, an economist at Dekabank in Frankfurt. “The labor market continues to weigh on spending. This year will be better than 2009, but we’re still far from normal conditions.”
Bloomberg
European Retail Sales Decline Most in Nine Months
European retail sales declined the most in nine months in February as rising unemployment prompted consumers to cut back spending.
Sales in the 16-nation euro region fell 0.6 percent from January, when they decreased 0.2 percent, the European Union’s statistics office in Luxembourg said today. That’s the biggest drop since May 2009. Economists forecast sales to remain unchanged, the median of 15 estimates in a Bloomberg News survey showed. From the year-earlier month, February retail sales declined 1.1 percent.
Euro-area companies may have to rely on exports to bolster sales as a double-digit jobless rate and increasing energy costs erode consumer confidence. Europe’s manufacturing growth accelerated in March and investor confidence rose this month. Henkel AG, the German maker of Loctite glues, said last month that it aims to boost sales in faster-growing emerging markets.
“Consumption will remain a burden to growth,” said Andreas Scheuerle, an economist at Dekabank in Frankfurt. “The labor market continues to weigh on spending. This year will be better than 2009, but we’re still far from normal conditions.”