Spain: Retail sales continue to contract in September
October 27, 2011
In September, retail sales (excluding service stations) fell 5.3% over the same month last year. The reading reflected a decrease in both food products (-1.5% year-on-year) and non-food products (-8.2% yoy). In working-day adjusted terms, retail sales dropped a subdued 0.3% over the previous month, partly reflecting a favourable base effect, as they had plunged an extraordinary 12.5% in August. The trend continues to point downwards, with annual average variation in retail sales edging down from a 4.3% contraction in August to a 4.5% decline in September, the lowest reading since January 2010. The downward trend in retail sales suggests that private consumption will remain a drag on economic activity going forward.