Euro area retailers record surprisingly strong sales losses
Retailers in the Eurozone unexpectedly suffered significant sales losses in June. They recorded 0.3 percent less in cash registers compared to the previous month, as reported by the statistical office Eurostat on Tuesday. Economists polled by the news agency Reuters had only expected a mini-loss of 0.1 percent, after a plus of 0.1 percent in May.
The business with food, drinks, and tobacco shrank by 0.7 percent in June. Revenue outside the food sector fell by 0.1 percent. At fuel stations, there was a growth of 0.5 percent.
Private consumption accounts for about two-thirds of economic output in the Eurozone. This grew "only at a snail's pace" in July, as described by the chief economist of the Hamburg Commercial Bank (HCOB), Cyrus de la Rubia, in view of the current purchasing managers' index. The barometer fell by 0.7 points to 50.2 points, as reported by the financial service provider S&P Global. The survey, in which purchasing managers from companies assess business conditions, is closely watched on financial markets as a leading indicator for economic development. It shows growth at values above 50.
Despite the expected mini-loss, the actual decrease in sales was more significant, leading to an increase in the retailers' desire for a turnover boost in July. The unexpected increase in turnover in the fuel stations sector might serve as a potential model for achieving this increase in turnover across all industries.
