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- Eurozone retail sales drop in July - ING
Eurozone retail sales drop in July - ING
Bert Colijn, a Senior Eurozone Economist at ING, suggests that Eurozone's retail sales 1.3% decline in July is a small drop compared to the gain of the last few months and it's therefore too early to worry about a double dip for retail.
"If you’re looking for worrying signals on the economy, today’s services PMI provides more reason for concern than retail sales - despite a decline in July."
"As for retail sales, they likely overshot somewhat in May and June, as pent-up demand was fulfilled to some degree in the first months of reopening. The July decline was small compared to the recovery in the months before, meaning that sales were still roughly at pre-virus levels. In that light, July numbers are actually still strong and this means that retail probably maintains the lead in the eurozone recovery. As such, this should not be read as a sign that retail sales are heading for a double dip. A more significant drop in August would be worrying though."
"In the months ahead, the retail sales recovery will increasingly be curbed by increasing unemployment and fulfilled pent-up demand from the lockdown period."
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