Spain: Retail sales worsen in May
June 27, 2013
In May, retail sales contracted 4.5% over the same month last year. The print was below the 2.6% fall tallied in April, which had represented the mildest drop seen since August 2012. The deterioration was broad-based, as all but one of the sub-categories that compose the index recorded large declines. On a working-day adjusted basis, retail sales declined 4.6% over the same month last year (April: -4.8% year-on-year).
Despite the monthly deterioration, the trend stabilized, with annual average variation in retail sales remaining at April's 7.9%. A negative growth in retail sales suggests that private consumption will continue to be a drag on economic activity going forward.
FocusEconomics panellists expect private consumption to decline 2.9% in 2013, which is unchanged over last month's projection. For 2014, the panel sees private consumption contracting 0.3%.