Spain: Retail sales growth returns to growth in May
June 28, 2017
Retail sales swung back to positive growth in May, reversing the decrease seen in April. With the recent erratic performance largely the result of seasonal one-off factors, households seem to be holding up despite higher inflation and subdued wage growth. Retail sales leaped 3.8% from the same month of the previous year in May, a noteworthy contrast to April’s 1.0% decrease and the best result since November 2016.
The upswing in sales was the result of a broad-based increase across subcomponents. Food purchases roared through May, while both personal and household equipment sales logged robust rates of growth. Meanwhile, on a seasonally- and calendar-adjusted basis, retail sales expanded 2.4% in annual terms in May, which was above April’s 1.9% increase and marked the fourth consecutive acceleration in retail sales growth.
In line with the headline swing, the annual average growth in retail sales inched up to 2.1% in May from 2.0% in April, which had marked the weakest reading in two years.
Author: David Ampudia, Economist