Spain: Depressed consumption continues to drag on retail sales
January 28, 2013
In December, retail sales contracted 10.2% over the same month the previous year, which exceeded the 7.8% drop recorded in November. The reading marks the 30th consecutive month of contracting retail sales, as consumer spending remains depressed. Although the monthly contraction was broad-based, it mainly reflected a sharp drop in sales of household and other goods. On a working-day adjusted basis, retail sales declined a sharper 10.7% over the same month the previous year (November: -7.8% yoy), which exceeded market expectations of an 8.9% contraction.
As a result of the monthly contraction, the trend continues to point downwards, with annual average variation in retail sales falling from minus 6.4% in November to minus 6.8%. Negative growth in retail sales suggests that private consumption will continue to be a drag on economic activity going forward.