IDEX Online Research: Euro-Zone Sales Slow
April 18, 06
Jewelers in the Euro-Zone who have been complaining about sluggish sales are experiencing the same pain as virtually all other retail categories. Retail trade in the Euro-Zone slowed again in February, after showing modest strength in the prior month.
On a year-to-year basis, Euro-Zone retail sales are showing a very modest +1.8 percent annualized gain, based on February 2006 figures. This is about the same growth pace as 2005’s gain of +1.9 percent.
Sales in the Euro-Zone are reported on a month-to-month basis, seasonally adjusted. This is different from
The table below summarizes retail trade activity for 2006 for the key Euro-Zone economies. Unfortunately, retail trade activity is summarized by broad categories, and no reliable figures on jewelry sales exist.
These continuing modest retail trade gains do not bode well for consumer activity in the euro currency region where private consumption remains a vital component of aggregate economic growth. If the struggling Euro-Zone economy is to recover from its current moribund state, a pickup in household spending is crucial for a sustainable rebound.
Unemployment continues to decline modestly, and now stands at 8.2 percent, down from 8.8 percent a year ago. We believe this signals a general improvement in the labor market, rather than workers dropping out of the workforce.