Spain: Retail sales growth slows notably in July
August 31, 2017
The expansion in retail sales moderated at the outset of the third quarter, with July sales only growing 0.7% in annual terms. This was notably below the revised 3.0% increase recorded in the previous month (previously reported: +2.8% year-on-year) as a result of weaker growth in food purchases and household equipment sales. Meanwhile, on a seasonally- and calendar-adjusted basis, retail sales swung from a 0.4% increase in June to a 0.5% drop in July, the worst figure in more than two years.
July’s retail sales report spells bad news for the Spanish economy as it indicates that household spending, the cornerstone of the Spanish recovery, could have entered the second half of the year on much weaker footing. Due to July’s sharp deceleration, the annual average growth in retail sales eased from 1.9% in June to 1.7% in July, which marks the weakest rate of growth since February 2015.
Author: David Ampudia, Economist