FRANKFURT (Reuters) -Euro zone retail sales unexpectedly fell in September, challenging expectations for a consumption-led recovery and offsetting other mildly positive news from the 20-nation
Euro zone retail sales unexpectedly fall in September
FRANKFURT (Reuters) -Euro zone retail sales unexpectedly fell in September, challenging expectations for a consumption-led recovery and offsetting other mildly positive news from the 20-nation currency bloc, data from Eurostat showed on Thursday.
Retail trade fell by 0.1% on the month in September, coming short of expectations for a 0.2% rise, while sales were up 1.0% compared to a year earlier, in line with expectations.
Euro zone households are sitting on ample savings and the European Central Bank has long expected them to start running these down in a boost to growth, but uncertainty keeps consumers cautious and actual figures continue to be disappointing.
Retail sales expanded by 0.2% on the month in Germany, the bloc's biggest economy and 0.4% in Spain, but there were falls in Italy, France and the Netherlands, among the bloc's bigger nations.
Still, other data, including sentiment readings and PMI data, show that the economy is holding up and ECB Vice President Luis de Guindos said policymakers were now marginally more optimistic on growth.
Non-food products sales dropped by 0.2% on the month, fuel sales were down 1% and food sales were stagnant, Eurostat added.
(Reporting by Balazs Koranyi; Editing by Alex Richardson)
