Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
European consumers turned cautious in July, with retail sales plunging by 2.3%, significantly underperforming analysts' forecasts of no change. Over the year to July, sales rose by 3.1%, well below the 4.5% gain predicted by private economists. In the only bit of bright news in a grim report, sales in June were revised upward to show a 1.8% gain, a touch stronger than the initially-reported 1.5% increase.
Sales in all retail categories slumped between June and July, with mail orders and internet plunging by 7.3%, extending a 6.5% retreat in June. Non-food products (excluding motor fuel) declined by 3.5%, reversing a 3.4% increase in June, while food, drinks and tobacco declined by 0.7%, stretching a 1.2% decline in the previous month. Motoring fuel (sold in specialised outlets) declined by 1.6% after a 2.7% gain in June.
The disappointing consumer data at the start of Q2 will add to what promises to be a spirited discussion about monetary stimulus when the European Central Bank meets next week, especially as economic confidence continued to ebb in Germany and France in August. However, monetary hawks on the ECB's governing council are likely to argue that higher-than-expected eurozone inflation -- HICP rose to an annual rate of 3.0% in August -- underlines the need to begin reducing the generous support extended through the first half of 2021.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.