BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Retail sales in the euro area declined at a faster than expected pace in May, data from Eurostat revealed Thursday.
Retail sales shrunk 0.5 percent month-on-month in April, in contrast to the revised 0.7 percent increase in March. Economists had forecast a 0.3 percent drop.
Here is how economists reacted -
Capital Economics: '...we expect them to rise gradually from here,' economist Lily Millard said.
Consumption is likely to rise a little over the remainder of the year as April's European Commission survey showed that consumer confidence, although still low, has improved, the economist said.
The EC survey also showed that consumers' intentions to buy a car within the next 12 months has increased. Moreover, real incomes are likely to have risen in Q1, the economist added.
'The ECB will probably reflect the slightly improved economic outlook in its revised macroeconomic projections to be published later today,' Millard said.
ING: The broad trend of stagnation that started in 2023 seems to be continuing for the time being, with no meaningful recovery expected this quarter, economist Bert Colijn said.
Recent surveys indicate that a sales recovery is not yet imminent with expectations remaining downbeat and volume of stocks continuing to grow, the economist observed.
While the intention of placing orders is slightly improving, selling price expectations are still decreasing.
'Overall, we think that it'll be the second half of 2024 before much improvement is seen here,' Colijn added.
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