Bert Colijn, Senior Economist at ING, suggests that the Eurozone retail sales increased in February and reached the highest level since early 2008, defying increased nervousness among consumers because of global turmoil.
“The poor start of the year for financial markets still has not impacted consumption in the Eurozone much as retail trade increased by 0.2% month-on-month and 2.4% year-on-year in February. This is the highest reading of retail sales since February 2008, which was the pre-crisis peak. The improvements in sales in January and February show that consumers talked the talk of lower confidence in recent months, but have yet to walk the walk. The unemployment recovery has boosted retail sales in the Eurozone.
Even though Eurozone consumers are wary of the global economic and political situation, the sharp downturn in consumer confidence over the past months is not yet having much of an impact on retail trade. Negative inflation has been enticing to consumers and stores are profiting. There are few signs of consumers delaying purchases because of the current spell of negative price growth so far. Besides that, the unemployment rate continued to decline in February, which is helping disposable income grow.
The months ahead could still be bleaker though as the labour market has lost a bit of its momentum in the first months of the year and the Eurozone service sector PMI indicated a slowdown of growth in March. This means that some weakness could still be ahead of us, but the current pace of sales growth is a good sign for the overall performance of the Eurozone economy in the first quarter.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.