Spain: Retail sales fall to six-month low in March
April 29, 2013
In March, retail sales contracted 10.9% over the same month last year. The print exceeded the revised 10.4% fall recorded in February (previously reported: -10.6% year-on-year) and represented the sharpest fall since September 2012. 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 softer 8.9% over the same month last year (February: -7.6% yoy).
As a result of the monthly contraction, the trend continues to point downwards, with annual average variation in retail sales falling from minus 8.0% in February to minus 8.6% in March, the lowest level on record. 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 0.1%.