Spain: Retail sales' pace of contraction accelerates in August
September 27, 2013
In August, retail sales contracted 4.2% over the same month last year. The print was below the 1.7% fall tallied in July (previously reported: -2.0% year-on-year), which had represented the slowest contraction since November 2010. The deterioration was broad-based; all sub-categories of the index, with the exception of household goods, lost some ground compared to the previous month. On a working-day adjusted basis, retail sales declined 4.5% over the same month last year (July: -3.4% yoy).
Annual average variation in retail sales deteriorated from minus 7.6% in July to minus 7.8% in August. Negative growth in retail sales suggests that private consumption will continue to be a drag on economic activity going forward.
FocusEconomics panelists expect private consumption to decline 2.6% in 2013, which is up 0.1 percentage points over last month's projection. The panel sees flat private consumption growth in 2014.