Retail Sales Fell In Eurozone Over Christmas, Eurostat Reveals
Published on Feb 5 2014 6:10 PM in Uncategorised
Demand for retail goods in the eurozone dropped over the Christmas period, according to Eurostat, the EU’s statistics office.
Sales in the 17 countries sharing the Euro fell by 1% in December in comparison with the same time a year earlier.
The slump in demand for consumer goods comes after a fall in Euro zone inflation to 0.7%, much lower than the European Central Bank’s target of under 2%, and near four-year lows.
A reluctance to spend from consumers is a contributing factor to the slow recovery, and could result in shops lowering prices to attract customers, then customers holding out for better bargains and prices lowering even further, increasing the chances of deflation.
Greg Fuzesi of JP Morgan told Reuters: “Some expect a move on rates, some expect a move on liquidity and some expect no move at all, including us. It is a very close call, but we would emphasize that the debate centres on options that would have only a modest impact on the economy."
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