Euro-Zone Retail Sales Rise for Second Month
It is a sign that after a long period of stagnation, the consumer spending may be increasing because of the retail sales in 17 countries that share the euro rose for the second straight month during August. According to the survey of purchasing managers, the euro zone’s return to growth might appear to have continued in the third quarter. The sale volume increasing 0.7% and it is good news for the euro-zone economy. If sustained, the consumer demand can be held back by increasing unemployment, low wage growth, and government austerity programs that have included cuts in benefits payments and tax hikes. However, the consumer spending rise and it helps the economy return to growth in the three months to June. But the retail sales remain at the low levels. So, the ECB President Mario Draghi suggested no new stimulus steps like cheaper bank loans to spur borrowing and spending. So, the figures show that the third quarter was the strongest for business activity in over two years. The fastest growth of euro-zone economy is Germany. Italy registered its fastest growth in over 2 years and France in over 1 year. But Spain economy activity slightly decline because Spain's economy is hobbled by a wounded banking system and very high unemployment.