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Spanish Retail Sales Numbers Improve

James Boston
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Spanish Retail Sales Numbers Improve

The consumer sector has softened a little in Spain according to the latest Retail Sales figures just published. The September report is showing that sales fell -1.8% month on month, this represents a reversal of the August growth number of 2.8%, the surprise element is somewhat limited as this particular economic metric has persistently oscillated between positive and negative over the course of the past year. In Spain’s situation the more appropriate measure is the more stable year on year number which is capturing the overall positive trend in Retail Sales growth. The yearly figure has this morning come in at 1.1% growth, this compares well to the August number of 0.4% and easily outperforms the market analysts expectations for a 0.5% reading.

Although volatility in the economic data emanating from Spain has lead to the impression of a number of false starts on the road to economic recovery it has to be borne in mind that that the Spanish economy is one of the few in Europe that is likely to meet it’s growth targets this year. While most of the main Eurozone economies are revising downward their growth prospects, Spain looks on course to exceed it’s official GDP projections for the year, the latest reading of third quarter GDP showed expansion of 0.5% over the three month period, depending on how the final quarter comes in Spain seems to be nicely set up to exceed it’s 1.3% growth target for 2014.

The longer term is also looking bright for Spain, at least according to the International Monetary Fund (IMF) which recently announced that the Spanish economy is one of the very few in the Eurozone for which it would be upgrading 2015 prospects. The IMF is now projecting 1.7% economic expansion for the Spanish economy for the full 2015 year.

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