Factory Orders and Retail Sales Decline As Inflation Surges in Europe
Skerdian Meta • 1 min read
A year ago, the European Central Bank (ECB) was considering inflation as transitionary. Now, it has reached 10%, a record level in Europe. The last reading of the CPI (consumer price index) inflation report, showed price increases broadening out from volatile food and energy into nearly all segments of the Eurozone economy.
The CPI jumped by 10%, up from 9.1% in August and above consensus projections of 9.7%Energy prices jumped 40.8% year-on-year in September, up from 38.6% in August, followed by food, alcohol and tobacco at 11.8%, up from 10.6% last month.
This is weighing on the eurozone economy, with German factory orders declining by 1.1% in August and remaining negative again in September, as today’s report which is listed below shows.
Eurozone Retail Sales Report
- Eurozone Retail Sales YoY for August -2.0% vs -1.7% expected
- July sales were -0.9%
Retail sales have been volatile in Europe as a result of surging prices, and today’s report showed a decline for August. This will keep the European Central Bank (ECB) cautious, with services and manufacturing already in contraction. ECB comments have been hawkish recently, but they will soon have to acknowledge the recession and that’s when the Euro decline will pick more speed.
German Industrial Orders
Industrial Orders MoM: -2.4% vs -0.7% Forecasted
Previous Industrial Orders were -1.1%
German industrial orders fell more than expected in August compared to the previous month, with large-scale orders taking a hit in particular, data showed on Thursday. New orders in manufacturing fell by 2.4% month on month on a seasonally and calendar-adjusted basis, the federal statistics office said. Analysts had predicted a less severe 0.7% drop, according to a Reuters poll. The office meanwhile revised up its reading for July, from a previously reported decline of 1.1% to 1.9% growth.