Global| Jun 04 2009EMU Retail Sales Volumes Erode At Slow Pace
Summary
EMU area retail sales volume is still eroding but at a slow pace. The volume drop in the past three months was just 0.2% per month Retail sales have been declining in the Area but have not been as weak as in the US. Passenger car [...]
EMU area retail sales volume is still eroding but at a slow
pace. The volume drop in the past three months was just 0.2% per month
Retail sales have been declining in the Area but have not been as weak
as in the US. Passenger car registrations in Europe have begun to take
off as several nations’ scrappage plans have encouraged consumers to
buy new vehicles.
Europe’s consumers still face hurdles. Unemployment is rising
and is still probably in is early sages of increasing; France reported
a surge in unemployment in Q1 just today as its rate jumped to 9.1%
from 8% in Q4. Spain’s rate has climbed up over 18% to nearly 19%.
Consumer confidence is low throughout the Area, although it has been
edging up. Income preservation polices have helped consumers to hold
the line on spending. Sensitive cyclical surveys in the form of
purchaser indices show that MFG and Service sectors are coming up from
their lows. With these positive pulses in train any further damage to
consumption from rising unemployment could be limited.
| Euro Area Retail Sales Volume | ||||||
|---|---|---|---|---|---|---|
| M/M | Saar | |||||
| Apr-09 | Mar-09 | Feb-09 | 3-Mo | 6-MO | 12-Mo | |
| Zone Total | -0.2% | -0.2% | -0.2% | -2.5% | -2.9% | -2.6% |
| Food, Beverage, and Tobacco | -0.1% | -0.1% | -0.2% | -1.8% | -2.1% | -2.1% |
| Motor Vehicle Reg | 5.9% | -1.7% | 20.4% | 146.8% | 8.4% | -8.1% |
| Non-Food Country detail: Volume | ||||||
| Germany | 0.5% | -0.4% | 0.0% | 0.4% | -1.5% | -0.3% |
| UK (EU) | 0.9% | 1.2% | -2.1% | -0.4% | 3.9% | 2.7% |
Robert Brusca
AuthorMore in Author Profile »Robert A. Brusca is Chief Economist of Fact and Opinion Economics, a consulting firm he founded in Manhattan. He has been an economist on Wall Street for over 25 years. He has visited central banking and large institutional clients in over 30 countries in his career as an economist. Mr. Brusca was a Divisional Research Chief at the Federal Reserve Bank of NY (Chief of the International Financial markets Division), a Fed Watcher at Irving Trust and Chief Economist at Nikko Securities International. He is widely quoted and appears in various media. Mr. Brusca holds an MA and Ph.D. in economics from Michigan State University and a BA in Economics from the University of Michigan. His research pursues his strong interests in non aligned policy economics as well as international economics. FAO Economics’ research targets investors to assist them in making better investment decisions in stocks, bonds and in a variety of international assets. The company does not manage money and has no conflicts in giving economic advice.
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