Disappointing retail sales in the Eurozone show a dangerous economic fragility
Today's disappointing results reported by Eurostat should raise fears for a possible future economic contraction with gray spillovers. In January 2023, retail trade in the euro area increased by 0.3% compared to the previous month, after a decline of 1.7% revised downwards in December and missing market expectations of a growth of 1, 0%. Sales increased for food, beverages and tobacco (1.8% compared to -2.1% in December) and for non-food goods (0.8% compared to -2.5%). Conversely, online commerce fell for the fourth consecutive month (-2.9% vs. -3.6%) and fuel sales fell sharply (-1.5% vs. 0.5%). On an annual basis, retail sales fell 2.3% in January, the fourth consecutive month of contraction. Here is the related graph.
This type of indicators should advise caution on ECB interest rates, but this point does not seem to be very clear for the current President Lagarde. The economic situation will better explain the problem soon.
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The article Disappointing retail sales in the Eurozone show dangerous economic fragility comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/vendite-retail-deludenti-in-area-euro-mostrano-una-pericolosa-fragilita-economica/ on Mon, 06 Mar 2023 22:17:33 +0000.