Retail sales provide much-needed eurozone boost but investor confidence falls for fifth consecutive month

The eurozone has been given a much-needed boost with better than expected retail sales at the end of last year.

Retail sales grew 0.6 per cent in November, the same rate as October, and better than forecasts of 0.2 per cent.

Eurozone investor confidence fell for the fifth consecutive, with the Sentix index dropping to -1.5, a new four-year low, also better than forecasts of -2.8.

ING economist Bert Colijn said the retail figures showed it was “not all doom and gloom” in the eurozone.

He said: “Even though consumer confidence continues to decline, circumstances for eurozone consumers have improved.

“Oil prices have dropped significantly and wage growth is on the rise, making real disposable income growth look pretty good for Europeans.”

The EU’s statistical office Eurostat said the volume of retail trade increased by 0.6 per cent in the euro area in November and by 0.7 per cent in the EU28 compared with October.

Non-food products and fuel trade increased by 1.2 per cent in the eurozone, while food, drinks and tobacco volume trade fell 0.9 per cent.

The largest trade increases came in Latvia, 2.4 per cent up, following by Poland and Estonia, both 2.1 per cent.

The Sentix investor confidence index, compiled through a survey of 998 investors, continued its downward momentum in its latest figures today, although the -1.5 reading was better than expected.

Sentix managing director Manfred Hubner said: “With this data, the eurozone is dangerously close to stagnation.

“Neither politicians nor central banks seem to have really grasped the extent of this loss of momentum.”

He added that continuing protests in France, the threat of a no-deal Brexit and the lack of support from the global economy remained negative factors.