- Jonathan Loynes, chief European economist at Capital Economics
Retail sales in Spain increased for the 16 consecutive month in November amid a falling unemployment and an improved macroeconomic landscape. According to the National Statistics Institute, Spanish retailers enjoyed a 3.3% rise in sales in the reported month following an upwardly revised advance of 6.0% in October. The gain was mainly driven by an increase in sales of household equipment by 4.7% and personal equipment by 3.6% in November. In contrast, food sales declined by 0.2% in November on an annual basis. Furthermore, retail hiring climbed 1.8% in November, the fastest pace since Spain entered a deep recession in 2008.
Meanwhile, business confidence in Italy's manufacturing sector unexpectedly declined, after registering 52-month high in October and November. The Manufacturing Confidence Index fell to 104.1 points in December, from a revised 104.4 booked a month ago. Analysts had forecast 104.4 points. Nevertheless, the index has now remained above the 100 threshold for the eleven months in a row. Spain's economy expanded 0.8% in the third quarter, while the growth rate in Italy was lower than expected at 0.2%, according to EU data.
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