Eurozone Retail Sector Under Pressure
Difficulties in the consumer sector across the Eurozone have been underlined this morning by the release of the Markit Economics Retail Purchasing Manager Indices (PMI) for the month of August. The Eurozone and all three of it’s largest economies have posted not only a fall on July but also remain deep in contractionary territory. The headline Eurozone number is now reading at 45.8 compared to a showing of 47.6 in July. Germany has slipped to 49.4 from 52.1. France is at 45.5, a slight fall from July’s 45.6. Meanwhile, Italy has posted a significant drop from 43.4 to just 40.8.
The falling PMI data is a direct reflection of the troubled retail sector in the Eurozone. Yesterday’s Retail Sales figures for the single currency bloc missed market expectations, the month on month number showed a contraction of -0.4% in Retail Sales while the year on year number managed a gain of 0.8% but fell short of the anticipated 0.9% growth.
The slow deterioration of the return to growth within the Eurozone has adversely affected consumer confidence. The lack of inflation also removes some of the urgency around larger ticket purchases. This results in a vicious circle where consumers defer spending in either the anticipation of better value or the lifting of uncertainty around their financial circumstances.
Economies such as the UK and to a certain extent the US have managed to spark and sustain the early stages of their recoveries through consumer demand. It is beginning to appear that the Eurozone will not be in a position to avail of such methods, with the slowdown in manufacturing, exports and now consumer demand the authorities are facing significant challenges in creating sufficient stimulus to counter balance four years of austerity. The European Central Bank has an opportunity later today to announce it’s latest move to create a meaningful stimulus.
- Green Dot’s GoBank Checking Account Launches Exclusively at Walmart 1 view
- US, global stocks rise amid revised IMF forecast 1 view
- Aussie Edges Lower as Yuan Declines 1 view
- The Pound moves toward support levels 1 view
- US dollar hits monthly low on Fed speculation 1 view
- Gold Miners Gain Traction Against the Yellow Metal 1 view
- Polish Buses Offer On-Board Self-Ticketing with Verifone NFC Payment Devices 1 view
- Stocks are Buoyed by Robust Retail Sales 1 view
- China Takes Mantel as Largest African Sweet Crude Oil Importer 1 view
- Polish Industrial Production Recovers 1 view
|Forex Broker Spreads »|
|Most Popular Articles »|
- PBTEEN UNVEILS ECO-CONSCIOUS CAPSULE COLLECTION WITH WORLD CHAMPION SURFER KELLY SLATER 1 view
- US Consumer Sentiment Declines in March: Reuters/University of Michigan 1 view
- EUR/USD at Risk 1 view
- FDA Approves Jakafi(R) (ruxolitinib) for the Treatment of Patients with Uncontrolled Polycythemia Vera 1 view
- Fluor’s Peter Oosterveer Elected to Board of U.S.-China Business Council 1 view
- Stocks Notch Up Losses for a Third Consecutive Session 1 view
- Alibaba becomes world’s biggest ever IPO 1 view
- US Dollar Pushes Higher as Yellen Weighs In 1 view
- Synchrony Financial and MEGA Group USA Extend Consumer Financing Agreement 1 view
- Euro Reverses Wednesday’s Gains as Flight to Quality Accelerates 1 view