Eurozone retail sales slip in sign of subdued domestic demand
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Retail sales fell in the eurozone in April, as domestic spending continues to be subdued amid economic jitters in the bloc.
The volume of retail sales fell by 0.4 per cent compared with the previous month, in line with economists’ expectations provided by Reuters. The figure for March was confirmed at 0 per cent.
A sharp decline in online shopping, which fell 3.1 per cent month-on-month, dragged down the reading, while shopping for clothing, textiles and footwear fell 1.5 per cent.
The data release did little to move the euro, which was recently 0.3 per cent higher against the US dollar.
Signs of muted domestic spending follow survey data, also released Wednesday, which showed private sector business activity inched higher in May but remained subdued.
The IHS Markit Eurozone Composite PMI — which is based on polls of executives in the services and factory sectors — rose to 51.8 in May, up from 51.5 in April and slightly above an earlier ‘flash’ estimate.
The reading was the highest in three months, but “the overall picture remains one of weak current growth and gloomier prospects for the year ahead,” said Chris Williamson, chief business economist at IHS Markit.
European Central Bank policymakers meet later this week in Vilnius, Lithuania, amid pressure to inject fresh stimulus into the region’s flagging economy.
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