Spain: Retail sales plunge in February
March 31, 2017
The effects of higher inflation and meagre wage growth are starting to be felt among Spanish households. Retail sales decreased 3.0% year-on-year in February, a severe deterioration from January’s 0.2% contraction. This marks the weakest reading observed in three and a half years. The decline in sales was broad-based: purchases of food, personal equipment and other goods fell and outstripped the only very minor increase seen in home equipment sales. On a seasonal- and calendar-adjusted basis, retail sales growth in February was flat, a slight improvement from the 0.1% decrease observed in January.
Annual average growth in retail sales dropped to 2.7% in February from 3.5% in January, the lowest result since June 2015.
Author: David Ampudia, Economist