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Bert Colijn, Senior Economist at ING, points out that the annual growth in Eurozone retail sales dropped to 0.8% in September.

Key Quotes

“The porridge has become a little hot in 2018 as inflation bumped up to 2.2% according to the latest data. Higher oil prices and a weakening euro are putting a significant dent in the recovery of real wage growth, curbing the potential of consumption growth in the Eurozone for the moment.”

“This shows in the September retail sales data  which saw a monthly decline in sales of non-food products of -0.5%. This was mainly due to a large drop in clothing sales and because of weaker sales in computer equipment.”

“This adds to a modest picture of GDP growth in the months ahead, with not much of a bounce back to be expected after the bleak reading of 0.2% in Q3.”