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Euro zone Dec retail sales fall more than expected

Published 02/04/2009, 05:04 AM
Updated 02/04/2009, 05:08 AM

BRUSSELS, Feb 4 (Reuters) - Euro zone retail sales fell more than expected year-on-year in December and November sales were revised to a much deeper drop than before, pointing to weakness in consumer demand as the economy sinks further into recession.

Retail sales in December -- traditionally boosted by Christmas shopping sprees -- were unchanged against November and 1.6 percent lower than a year earlier, European Union statistics office Eurostat said on Wednesday.

Economists polled by Reuters had expected a monthly fall of 0.3 percent and a 1.5 percent annual decline.

Eurostat revised down its November sales data to a 0.1 percent monthly fall from the previously reported 0.6 percent rise, and to a 2.6 percent annual drop against the 1.5 percent fall reported previously.

A detailed breakdown was not yet available, but Eurostat said food, drink and tobacco sales rose 0.2 percent month-on-month in December, while sales of non-food products fell 0.4 percent.

Retail sales are an indication of household demand. Falling private consumption was one of the reasons for a shrinkage in the euro zone economy in the second and third quarters of 2008. (Reporting by Jan Strupczewski, editing by Dale Hudson)

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