Analysts at Rabobank suggest that the Eurozone retail sales for August are worth watching in today’s session as the activity in this sector has been fairly weak in recent months.
Key Quotes
“In July volume growth stood at a meagre 1.1% y/y, explaining also why consumption was one of the weak points in the Q2 GDP report. Whilst the market is looking for a small improvement by 0.2% m/m, taking the annual growth rate back to 1.7%, the recent weakening trend has coincided with rising headline inflation.”
“This is not a big surprise given that household incomes have only improved very gradually and inflation has seen several energy-driven spikes since 2016. Bearing in mind the recent trend in oil, another negative surprise on this front cannot be dismissed.”
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