Shops in the eurozone experience sales declines.
Retailers in the Euro countries faced a dip in sales in April, with their cash receipts being 0.5% lower than the previous month, as per Eurostat, the statistical office. Economic analysts surveyed by Reuters had anticipated a drop of 0.3% after a corrected 0.7% rise in March.
Food, beverage, and tobacco sales dipped by 0.5%. Profits in sectors other than food dropped by 0.1%. However, there was a considerable sales fall of 2.2% at gas stations.
This development signals potential problems for private consumption, which accounts for approximately two-thirds of economic output in the Euro region. The economy, however, has marginally improved during the spring. S&P Global's purchasing managers' index points towards growth in the Euro area and reached its highest level in a year in May.
The European Central Bank (ECB) is making efforts to control the persistent price surge through a restrictive monetary policy without hampering the economy. It has hinted that conditions for a rate hike might have been accomplished. Experts predict that the key interest rate will be lowered by 0.25 percentage points at the current meeting. The deposit and lending rates would then be 3.75% and 4.25%, respectively.
