Forex »

Spanish Retail Sales Improve

James Boston
Share on StockTwits
Published on
www.finances.com
Spanish Retail Sales Improve

The consumer sector in Spain is continuing to show strong signs of recovery according to the August Retail Sales figures published this morning. The latest reading is showing a month on month change of 2.8%, this compares to the slight slippage of -0.2% in July, there was a forecast for a 1% pick up this morning. The year on year number is now reading at 0.4% following July’s fall of -0.5% and the market’s opinion that today’s reading would be in the region of -0.6%.

Additionally, Spain has released an early inflation estimate for the month of September. The preliminary version of the Harmonized Index of Consumer Prices (HICP) was published earlier this morning. The year on year inflation figure is now believed to be running at -0.2%, this is in comparison to the final August number of -0.5% and a consensus estimate of 0.3% on today’s figure. Month on month the HICP estimate stands at 0.1% following last month’s moderate expansion of 0.2%, the anticipated number was for 0.12% price growth in September.

In a positively surprising move the Spanish Government last Friday raised the official growth estimates for the economy. GDP growth targets have been revised upward to 1.3% for the full 2014 year and 2% for 2015, these had been seen as 1.2% and 1.8% for the two years respectively. It is anticipated that the four consecutive quarters of increasing growth will continue to gather momentum as the Spanish economy begins to confirm it’s position on the recovery track. The unemployment situation is also forecast to improve quicker than initially anticipated, the current level of 24.5% is now being projected to drop to just 22.2% by the end of next year as rate of job creation is beginning to exceed previously targeted levels. Additionally, the government are projecting a narrowing of the budget deficit as it now appears that tax receipts will come in higher than initially projected.

Share on StockTwits