Eurozone Retail Sales Plunge in November

Retail sales haven’t really recuperated after the big decline during the lockdown months. They did turn positive for a couple of months in summer after Europe reopened, but they have been volatile since them, turning negative often, like in November. Despite Black Friday, retail sales took a deep plunge in Europe that month, due to the increased restrictions, and the December figures should be negative again, thanks to the lockdowns, despite Christmas.

Eurozone November Retail Sales Report From Eurostat – January 7, 2021

• Eurozone November retail sales MoM -6.1% vs -3.4% expected
• October retail sales MoM +1.5%; revised to +1.4%
• November retail sales YoY -2.9% vs +0.9% expected
• Prior sales YoY +4.3%; revised to +4.2%

Amid tighter virus restrictions, Euro area retail sales slumped heavily in November, with textiles, clothing and footwear leading the drop. That’s not a good sign of Q4 consumption, but the consolation is that the market is more concerned about Q1 prospects now. The EUR/USD is down around 100 pips today.