Spain: Retail sales decline for two straight years
August 31, 2012
In July, retail sales dropped 6.9% over the same month last year, which marked a deterioration compared to the revised 4.4% drop recorded in June (previously reported: -4.3% year-on-year). The reading marked the 25th consecutive month of declining retail sales, as consumer spending remains depressed. Although the decline was broad-based, the monthly reading mainly reflected a sharp drop in sales at service stations. As a result of the decline in July, the trend is pointing downwards again, with annual average variation in retail sales inching down from minus 5.7% in June to minus 5.8%. Negative growth in retail sales suggests that private consumption will continue to be a drag on economic activity going forward.