Eurozone Retail Sales Fall Most Since April

Eurozone shoppers scaled down their spending for the third consecutive month in October, resulting in the biggest decline in retail sales in six months.

Sales fell 1.2 percent in October from a month ago, when it dropped 0.6 percent, EU's statistics office Eurostat said Wednesday. Sales were forecast to fall just 0.2 percent. October's decrease was the biggest since April when it was down 1.5 percent.

IHS Global Insight Chief European economist Howard Archer said the prospects for consumer spending in the Eurozone look troubling in the near term at least given very low consumer confidence, high and rising unemployment, generally muted wage growth and tightening fiscal policy in many countries.

Data today showed that sale of food products slipped 0.8 percent, and non-food sales decreased 1.4 percent in October.

The volume of retail sales declined 3.6 percent on a yearly basis, following a 1.6 percent drop in September. Economists had expected a 0.8 percent fall for October.

Retail sales fell in sixteen and rose in five member states based on available data. The largest monthly decreases were observed in Portugal, Finland and Germany, while the highest increase was logged by Ireland, followed by Lithuania and Belgium.

The final Purchasing Managers' Index survey for November showed that private sector continued to contract, but at a slightly slower than initially estimate.

The composite output index, which measures the combined output of the manufacturing and service sectors, rose to 46.5 in November from 45.7 in October. The flash reading was 45.8. Downturns continued in both the manufacturing and service sectors in November.

Markit Chief Economist Chris Williamson said the Eurozone's recession looks to have deepened in the final quarter, with GDP likely to have fallen by considerably more than the modest 0.1 percent decline seen in the third quarter.