Eurozone retail sales dip in January, miss expectations
Eurozone retail sales fell on the month but rose on the year in January, according to the latest figures from Eurostat
Sales were down 0.1% compared to December 2017, easing from a 1% decline the month before but missing expectations for a 0.3% increase. Sales of non-food products were down 0.3%, while food, drink and tobacco sales declined 0.2%, but automotive fuel sales were up 0.1%.
On the year, sales were up 2.3% compared to a revised 2.1% gain in December and ahead of expectations of a 2.1% rise. Sales of non-food products rose 3.8%, while food, drink and tobacco sales were 0.8% higher and automotive fuel sales edged up 0.2%.
In the EU-28 group of nations, retail sales were down 0.1% on the month in January and up 2.7% on the year.
Stephen Brown, European economist at Capital Economics, said that while January's 0.1% dip was below consensus expectations, it was in line with his forecast.
"The recent softness of eurozone retail sales is probably due to temporary factors and surveys bode well for the outlook.
"For a start, clothing sales probably rebounded in February, not least due to last month’s unseasonably-cold weather. More fundamentally, labour market developments are positive and households in some places will benefit from a small fiscal boost, including those in Germany after yesterday’s news that the SPD’s members approved a new grand coalition. And the high level of eurozone consumer confidence points to a rise in annual sales growth to as high as 3.5%."