Wednesday, August 4, 2010

European Consumption Stagnant

Bloomberg details:

European retail sales were unchanged in June as households reduced spending in Germany and France.

Sales in the 16-nation euro area showed no increase from May, when they rose 0.4 percent, the European Union’s statistics office in Luxembourg said today. That matched the median forecast of 19 economists in a Bloomberg News survey. From a year earlier, June retail sales gained 0.4 percent after rising 0.6 percent in May.

European consumers may remain reluctant to boost spending as companies continue to cut wage costs and eliminate jobs to shore up earnings. Unemployment held at 10 percent in June, the highest in almost 12 years.
While developed Europe consumption continues to stagnate, Eastern Europe has bounced back surprisingly well (albeit off of rather extreme lows).

Source: Eurostat

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