Euro zone customers maintain again spending as economic system stagnates

FRANKFURT (Reuters) – Euro zone retail gross sales grew lower than anticipated in November, confirming that consumption stays within the doldrums and including to a current string of gloomy information in regards to the well being of the forex bloc’s economic system.

Retail gross sales within the 20 nations sharing the euro grew by 0.1% in November in comparison with the earlier month, falling wanting expectations for 0.4% in a Reuters ballot and making up only a fraction of the earlier month’s 0.3% drop, information from Eurostat confirmed on Thursday.

In comparison with the identical month a yr in the past, retail gross sales grew by 1.2%, with the speed staying on a downward trajectory for the second month in a row.

The euro zone economic system has been skirting recession for the previous yr, partly as a result of customers are selecting to avoid wasting their money and rebuild wealth misplaced to speedy inflation prior to now three years.

Whereas policymakers have lengthy guess on an increase in consumption driving the restoration, they’ve been disillusioned month after month, and a notable softening within the labour market might encourage much more precautionary saving.

Meals and gas gross sales accounted for all of the month-to-month development whereas non-food merchandise gross sales dropped by 0.6%, including to an analogous fall a month earlier.

Among the many bloc’s largest international locations Germany and Spain recorded sizable month-to-month drops in retail gross sales, offset by higher performances elsewhere.