Spain: Retail sales continue to fall sharply
November 28, 2012
In October, retail sales contracted 8.4% over the same month last year, which marked a moderation compared to the revised 12.6% drop recorded in September (previously reported: -12.7% year-on-year). The reading marks the 28th consecutive month of declining retail sales, as consumer spending remains depressed. Although the monthly contraction was broad-based, it mainly reflected a sharp drop in sales of household goods. On a working-day adjusted basis, retail sales declined a sharper 9.7% over the same month last year (September: -11.0% yoy). As a result of the monthly contraction, the trend continues to point downwards, with annual average variation in retail sales falling from minus 6.3% in September to minus 6.4%. Negative growth in retail sales suggests that private consumption will continue to be a drag on economic activity going forward.