Retail sales slump more than expected in Europe

Berlin  - European retail trade fell more than expected in April, data released Wednesday showed, adding to signs of slowing growth amid concerns about soaring food prices and inflation.

The European Union's statistics office said retail trade in the 15-member eurozone dropped by 0.6 per cent month on month in April resulting in an annual fall of 2.9 per cent.

Analysts had predicted that retail sales in the currency bloc would edge up by 0.2 per cent in April and rise by a modest 0.6 per cent on the year.

A closely watched European Commission survey released last week showed consumer confidence in May in the eurozone cascading down to its lowest level since September 2005.

Releasing the data, the statistics office also revised down the March retail sales data to a month-on-month fall of 0.9 per cent and a year-on-year drop of 2.3 per cent.

With food prices surging, Wednesday's figures showed sales of food, drinks and tobacco sliding by 1 per cent month on month in April to record an annual 3.4-per-cent fall.

The data showed retail sales in the 27-member EU dropping 0.4 per cent in April and by 0.8 per cent on the year.

Once again, the statistics point to the EU's new member states in Central and Eastern Europe outperforming several of the Brussels-based bloc's bigger and more established members.

While retail trade in Romania bounded by an annual 18 per cent in April and by 14 per cent in Lithuania, retail trade in Europe's biggest economy, Germany, slumped by
5.6 per cent on the year. (dpa)

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