Spain: Retail sales pace of contraction slows in July
August 30, 2013
In July, retail sales contracted 2.0% over the same month last year. The print was well above the 6.9% fall tallied in June and represents the slowest contraction since November 2010. The deterioration was broad-based - all sub-categories that compose the index recorded declines. On a working-day adjusted basis, retail sales declined 3.8% over the same month last year (June: -4.9% year-on-year).
Annual average variation in retail sales improved from minus 8.1% in June to minus 7.6% in July. 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%.