Euro area retail sales slump slowed in September as the deeper fall in the non-food segment was partially offset by the rebound in food sales, but the data cast doubt over the ability of household spending to contribute to economic output.<\/p>\n
Retail trade dropped 0.3 percent month-on-month in September, which was slower than August’s revised 0.7 percent decline, figures from Eurostat showed Wednesday. <\/p>\n
Sales were expected to ease 0.2 percent. Retail turnover has declined in each and every month of the third quarter. <\/p>\n
The year-on-year decline in retail sales worsened to 2.9 percent from 1.8 percent. Sales were forecast to fall more sharply by 3.1 percent. <\/p>\n
Capital Economics economist Pollyanna Hall said sales are set to remain weak in the coming months as the economy<\/span> falls into a recession. <\/p>\n The 20-nation single currency bloc had contracted 0.1 percent in the third quarter, partially reversing the 0.2 percent expansion in the second quarter. <\/p>\n Food, drinks and tobacco sales rebounded 1.4 percent, reversing a 0.4 percent drop. By contrast, non-food product sales declined at a faster pace of 1.9 percent after a 0.6 percent fall. <\/p>\n Mail orders and internet sales posted a monthly decrease of 1.9 percent after falling 2.0 percent in the previous month. <\/p>\n Sales of automotive fuel in specialized stores were down 0.9 percent, slower than the 2.4 percent fall in the prior month. <\/p>\n Data showed that retail sales in the EU27 slid 0.2 percent on month taking the annual fall to 2.7 percent in September.<\/p>\n Among member states of EU27, the largest monthly decreases in the total retail trade volume were registered in Slovakia, Sweden, Germany and the Netherlands. <\/p>\n Meanwhile, Slovenia, Poland and Denmark posted the highest increases in retail sales. <\/p>\n