Forex News – Eurozone retail sales drop in December
February 5, 2014 1:57 pm
The volume of retail sales in the Eurozone fell by more-than-forecast in December, as the Christmas shopping season failed to tempt shoppers to spend more. The drop in sales marked the biggest fall since May 2011.
According to the EU’s statistics office Eurostat, the volume of retail trade in the 17-member euro area fell 1.6 % in the month of December after a revised 0.9% rise in November. Most analysts expected only a 0.7% decline. Compared with the same period a year ago, the December 2013 retail sales figure decreased by 1.0% from December 2012.
The largest December decreases in retail sales were in Germany, 2.4%, Belgium, 1.9% and Finland, 1.3%. The highest increases were in Luxembourg, 9.4%, Poland, 6.7%, Romania, 5.9% and Bulgaria, 5.6%.
Today’s sales data comes after last Friday’s disappointing inflation data which raised some concerns of a risk of deflation in the Eurozone. January’s inflation rate grew at a mere 0.7% from 0.8% year-on year in December and far below the European Central Bank’s target of just under 2%.
The European Central Bank holds its monthly policy meeting on Thursday and with such weak data, expectations are growing among economists for more ECB action. Such a move includes a possible lowering of the current 0.25% rate. Some predict a cut in the refinancing rate to 0.1%.
The euro fell briefly against the dollar and against the yen after the retail sales data.
The volume of retail sales in the Eurozone fell by more-than-forecast in December, as the Christmas shopping season failed to tempt shoppers to spend more. The drop in sales marked the biggest fall since May 2011.
According to the EU’s statistics office Eurostat, the volume of retail trade in the 17-member euro area fell 1.6 % in the month of December after a revised 0.9% rise in November. Most analysts expected only a 0.7% decline. Compared with the same period a year ago, the December 2013 retail sales figure decreased by 1.0% from December 2012.
The largest December decreases in retail sales were in Germany, 2.4%, Belgium, 1.9% and Finland, 1.3%. The highest increases were in Luxembourg, 9.4%, Poland, 6.7%, Romania, 5.9% and Bulgaria, 5.6%.
Today’s sales data comes after last Friday’s disappointing inflation data which raised some concerns of a risk of deflation in the Eurozone. January’s inflation rate grew at a mere 0.7% from 0.8% year-on year in December and far below the European Central Bank’s target of just under 2%.
The European Central Bank holds its monthly policy meeting on Thursday and with such weak data, expectations are growing among economists for more ECB action. Such a move includes a possible lowering of the current 0.25% rate. Some predict a cut in the refinancing rate to 0.1%.
The euro fell briefly against the dollar and against the yen after the retail sales data.
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