FXStreet (Guatemala) – Peter Vanden Houte, analyst at ING Bank noted the key data released from the EZ of late.
Key Quotes:
“Retail sales in the Eurozone decreased by 0.6% in June after a downwards revised 0.1% increase in May. This was below the consensus expectation for a 0.3% fall. On a year-on-year basis there was 1.2% growth after 2.6% in May. Since peaking in March, consumer confidence has weakened on the back of higher energy prices, tanking stock markets and an escalation of the tensions between Greece and its creditors. This might explain the somewhat softer retail sales figures.
That said, one shouldn’t read too much into the negative growth figure, as monthly retail sales figures tend to be rather erratic. Since the second quarter of 2013, when the unemployment rate peaked, retail sales have been in an upward trend. This trend is likely to continue as the labour market continues to improve, the renewed fall in energy prices boosts purchasing power and austerity is gradually easing.
Despite today’s somewhat softer figure, we still expect consumption to be one of the main growth engines in the second half of this year. But it seems clear that talking of a consumption boom would be somewhat overdoing it, if one takes into account the latest data.”
(Market News Provided by FXstreet)