Wednesday May 6, 01:45 PM
Slump in eurozone retail sales 'accelerates'
BRUSSELS (AFP) - Retailers in the 16 nations using the euro saw a slump in their sales accelerate in March, according to official EU data released on Wednesday.
The volume of retail sales in the eurozone fell 0.6 percent in March over one month, bringing the decline over one year to 4.2 percent, the European Union's Eurostat data agency said.
The result was slightly worse than in February when retail sales fell only 0.3 percent over one month and 4.0 percent over one year.
Meanwhile, in the 27-nation EU, retail sales fell 0.3 percent in February over one month and 3.1 percent over one year.
Retail sales fell one percent over one month in Germany, Europe's biggest economy, which was only partially offset by a 1.1 percent increase in France.
The overall weakness in retail sales comes after some recent economic data indicated that Europe's worst post-war recession may finally be bottoming out, although unemployment is likely to keep rising well into next year.
"While there are mounting signs that the rate of eurozone economic contraction is now moderating ..., the further fall in retail sales in March maintains concerns about the health of the consumer," said IHS Global Insight economist Howard Archer.
"March's fall in eurozone retail sales volumes is further evidence that weakness in the labour market is offsetting the positive impact of falling inflation on spending," said Jennifer McKeown at consultants Capital Economics.
"Looking ahead, rising unemployment looks set to keep spending under pressure in the near term," she added.
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