March 06, 2023 10:00 GMT
Jan Retail Sales Weaker on Falling Auto Fuel Sales
EUROZONE JAN RETAIL SALES +0.3% M/M (FCST +0.6%); DEC -1.6%r M/M
EUROZONE JAN RETAIL SALES -2.3% Y/Y (FCST -1.8%); JAN -2.8% Y/Y
- Euro area retail trade was weak in January, rising a modest +0.3% m/m after the upwardly revised -1.6% m/m contraction in December. Sales remained -2.3% lower than January 2022 levels.
- With both headline prints below consensus expectations, the January data implies a weak start to 2023 after a contractive Q4.
- Yet January weakness on the month was largely due to the -1.5% m/m fall in auto fuel. Both food/tobacco and and non-food sales rose, by +1.8% m/m and +0.8% m/m respectively. This signals a marginal improvement in underling spending in line with slowly recovering consumer confidence in recent months.
- Looking forward, eurozone consumer confidence continued to recover for a fifth month in the February survey, with promising signs of purchasing intentions improving. The European Commission retail trade index edged up to only marginally negative in February. With inflation remaining elevated, improved consumer sentiment seeing a rebound in retail demand remains unlikely for the time being.
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