Strongest year-on-year growth for European retail in 7 years

Strongest year-on-year growth for European retail in 7 years

Retail in the euro zone grew 0.4 % compared to May and compared to June 2013, it is a nearly 2.5 % increase, the strongest year-on-year growth in the last 7 years.

Both food and non-food grow

The seasonally adjusted volume of retail trade in the euro zone grew 0.4 % in June, fractionally better than in May (+ 0.3 %). Food, drink and tobacco expenses grew 0.5 %, while non-food expenses grew 0.3 %.

 

Compared to June 2013, retail has even improved 2.4 % in the euro zone, in every branch. Food, drink and tobacco went up 2 %, non-food (like textile, electronics, books and computers) went up 3 %. It has not happened since March 2007 that European retail had grown that much.

 

Not at pre-crisis levels by far

Apparently, the European consumer has started shopping a bit more with mainly French, German, Austrian and Polish consumers pushing up the numbers. Germany and France, the two largest economies in the euro zone, have experienced their largest yearly growth since February 2011: respectively + 2.7 % and + 4.9 %.

 

Five countries experienced turnover drops: Finland, Portugal, Malta, Spain and Belgium. Belgian turnover dropped 0.4 % in June, compared to May, but compared to June last year, it went up 0.3 %.

 

Things are far from over though as retail has not digested the crisis yet. The sector may almost have reached 2010 levels in June, but the pre-crisis levels are still quite a while away.

Tags: