Eurozone retail sales grew less than expected in August, after declining in the previous month, preliminary data from Eurostat showed on Wednesday.
Retail sales in the countries that share the euro currency rose by 0.3 per cent month-on-month in August compared with expectations of a 0.8 per cent increase and a decline of 2.6 per cent the previous month, the release showed. On an annualised basis, the bloc’s retail sales came in at zero per cent in August after increasing by 3.1 per cent in July and 0.4 per cent estimated.
“With energy prices soaring, furlough schemes ending and rebound effects waning, we expect consumption growth to fade over the course of the fourth quarter,” Bert Colijn, an economist at ING, said.
Meanwhile, the British services sector continued to grow in September, but severe supply constraints fuelled inflationary pressures, final survey data from IHS Markit showed on Tuesday. The Chartered Institute of Procurement and Supply final services Purchasing Managers’ Index came in at 55.4 in September, up slightly from August’s six-month low of 55.0.
New order growth weakened for the fourth consecutive month. Staff shortages, supply chain issues and the end of the stamp duty holiday on property transactions were among the most cited reasons for softer demand. The survey showed that a lack of candidates to fill job vacancies and persistently high numbers of departing staff acted as a considerable dampener on employment growth.
Finally, in Germany, factory orders fell significantly in August, plummeting 7.7 per cent compared to the previous month, according to official figures published on Wednesday. The August decrease more than offset a revised 4.9 per cent rise in July and was the biggest percentage decline since April 2020. Orders were forecast to drop moderately by 2.1 per cent.
Excluding major orders, manufacturing orders decreased by 5.1 per cent from July.
Year-on-year, manufacturing orders advanced 11.7 per cent after rising 26.1 per cent in the previous month. Although the trend in orders sectors other than vehicles continues to point upward, manufacturing is likely to remain a drag on the recovery of the German economy, Ralph Solveen, a Commerzbank economist said.
This report was compiled by Bank of Valletta for general information purposes only.