Spain: Retail sales improve in August
September 27, 2012
In August, retail sales dropped 2.1% over the same month last year, which marked an improvement compared to the 7.0% drop recorded in July. The figure marked, in fact, the smallest drop recorded in 16 months. That said, the reading marked the 26th consecutive month of declining retail sales, as consumer spending remains depressed. The monthly reading mainly reflected declines in most categories, with the exception of sales of food and household equipment. As a result of the softer decline in August, the trend is now pointing upwards, with annual average variation in retail sales inching up from minus 5.8% in July to minus 5.7%. Negative growth in retail sales suggests that private consumption will continue to be a drag on economic activity going forward.