Euro area retail sales grew less than expected in August, after a decline in the previous month, preliminary data from Eurostat showed Wednesday. <\/p>\n
Retail sales rose 0.3 percent month-on-month following a 2.6 percent fall in July, which was revised from 2.3 percent. Economists had forecast 0.8 percent growth. <\/p>\n
On a year-on-year basis, Eurozone retail sales remained unchanged in August after a 3.1 percent growth in July. Economists had predicted 0.4 percent gain. <\/p>\n
Compared to the previous month, sales of non-food products increased 1.8 percent, while those of automotive fuel dropped 0.1 percent. Sales of food, drinks and tobacco decreased 1.7 percent. <\/p>\n
In the EU, retail sales increased 0.3 percent from July, when they fell 2.1 percent. Compared to the same month last year, retail sales rose 1.1 percent after a 3.8 percent growth in July. <\/p>\n
Among the member states, Malta, Ireland and Slovakia registered the biggest monthly increases, while the worst declines were seen in Denmark, Estonia and France.<\/p>\n
ING economist Bert Colijn said retail sales likely peaked in the second quarter and consumption is set for moderation from here. <\/p>\n
Minus a growth in September retail sales likely grew only 0.2 percent in the third quarter after a 3.9 percent jump in the previous three months that was driven by reopenings, the economist reckoned.<\/p>\n
“With energy prices soaring, furlough schemes ending and rebound effects waning, we expect consumption growth to fade over the course of the fourth quarter,” Colijn said.<\/p>\n
That said, the high savings with Europeans, the low unemployment rate and record high consumer confidence could still lead to above-trend growth in retail sales, the economist added. <\/p>\n