Spain: Retail sales drop at softer pace in eight months
May 29, 2013
In April, retail sales contracted 2.6% over the same month last year. The print was well above the 10.9% fall tallied in March and represented, in fact, the mildest drop seen since August 2012. The improvement was broad-based, as all the sub-categories that compose the index recorded softest declines. On a working-day adjusted basis, retail sales declined 4.9% over the same month last year (March: -8.9% year-on-year).
As a result of the relatively subdued monthly contraction, the trend now points upwards, with annual average variation in retail sales rising from minus 8.6% in March to minus 7.9% in April. Nevertheless, negative growth in retail sales suggests that private consumption will continue to be a drag on economic activity going forward.
FocusEconomics panellists expect private consumption to decline 2.9% in 2013, which is unchanged over last month's projection. For 2014, the panel sees private consumption contracting 0.2%.