Thursday, February 6, 2025 12:47 PM EDT
Retail sales fell by 0.2% month-on-month in December, continuing a decline from a recent September peak. Weak consumer confidence is getting in the way of a solid rebound in retail sales despite improving purchasing power.

Image Source: Pixabay
After a quiet recovery of retail sales in the third quarter of 2024, the last three months of the year have shown a decline in activity again. While retail trade is still well above levels seen at the end of 2023, hopes of a short-term revival have fallen. It looks like weak consumer confidence remains a barrier to further consumption growth at the moment, with economic uncertainty having increased among European consumers since US President Donald Trump's election.
Besides confidence, underlying factors for spending do still point in the right direction. Consumers are still seeing real wage growth improve with nominal wage growth currently outpacing inflation significantly. The latest quarterly data shows an improvement of 3.3%, which is the strongest in decades. Over time, this will translate into a further recovery of retail sales in the eurozone, but the question is how gloomy consumers remain in the months ahead despite incomes improving.
More By This Author:
Gold Monthly: $3,000 Is Now In Sight
Bank Of England Cuts Rates With Three More To Come This Year
Czech Inflation Slows Down, But Less Than Expected
Disclaimer: This publication has been prepared by the Economic and Financial Analysis Division of ING Bank N.V. (“ING”) solely for information purposes without regard to any ...
more
Disclaimer: This publication has been prepared by the Economic and Financial Analysis Division of ING Bank N.V. (“ING”) solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. ING forms part of ING Group (being for this purpose ING Group NV and its subsidiary and affiliated companies). The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Reasonable care has been taken to ensure that this publication is not untrue or misleading when published, but ING does not represent that it is accurate or complete. ING does not accept any liability for any direct, indirect or consequential loss arising from any use of this publication. Unless otherwise stated, any views, forecasts, or estimates are solely those of the author(s), as of the date of the publication and are subject to change without notice.
The distribution of this publication may be restricted by law or regulation in different jurisdictions and persons into whose possession this publication comes should inform themselves about, and observe, such restrictions.
Copyright and database rights protection exists in this report and it may not be reproduced, distributed or published by any person for any purpose without the prior express consent of ING. All rights are reserved. ING Bank N.V. is authorised by the Dutch Central Bank and supervised by the European Central Bank (ECB), the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). ING Bank N.V. is incorporated in the Netherlands (Trade Register no. 33031431 Amsterdam). In the United Kingdom this information is approved and/or communicated by ING Bank N.V., London Branch. ING Bank N.V., London Branch is deemed authorised by the Prudential Regulation Authority and is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. The nature and extent of consumer protections may differ from those for firms based in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website.. ING Bank N.V., London branch is registered in England (Registration number BR000341) at 8-10 Moorgate, London EC2 6DA. For US Investors: Any person wishing to discuss this report or effect transactions in any security discussed herein should contact ING Financial Markets LLC, which is a member of the NYSE, FINRA and SIPC and part of ING, and which has accepted responsibility for the distribution of this report in the United States under applicable requirements.
less
How did you like this article? Let us know so we can better customize your reading experience.