Euro Area Sentiment Dips; Spanish Inflation 3.6%, Retail Sales Drop 4.8%

Arthi Gupta
30 Mar, 2011
New York City

Euro-zone economic sentiment dipped in March. Dutch factory price inflation accelerated in February. The Bank of Spain forecasted 0.8% GDP growth in 2011. Spanish retail sales fell in February. Portuguese retail sales decreased and factory output rose in February.

[R]1:00 PM Frankfurt – Euro-zone economic sentiment dipped in March. Dutch factory price inflation accelerated in February. The Bank of Spain forecasted 0.8% GDP growth in 2011. Spanish retail sales fell in February. Portuguese retail sales decreased and factory output rose in February.[/R]

Euro-zone Economic Sentiment Dips

Euro-zone economic sentiment fell to 107.3 in March from 107.9 in February, survey results from the European Commission showed today.

The overall decline in the euro area resulted from broadly unchanged sentiment in industry and weakening confidence in the other business sectors and among consumers.

German Ifo Business Credit Constraint Indicator Up

The German Ifo Business Credit Constraint Indicator inched up 0.1 percentage point from last month to 23.7% in March. Despite the rise in the indicator, constraints remained low.

For large firms, the indicator rose 0.3 percentage points to 22.6% and for medium-sized firms; it dropped 0.6 percentage points to 21%. Credit constraints increased 2.3 percentage points to 24.5% for small firms.

Dutch Factory Price Inflation Accelerates

Dutch producer price inflation accelerated to 12.3% in February from 11.1% in January for a sixth successive month, the Central Bureau of Statistics said on Wednesday.

The sharpest price growth was recorded in oil industry with nearly 34% increase from last year. Domestic producer prices increased 10.5% annually in February after a 10% rise in January.

The producer price index rose 2% on a monthly basis in February compared to the 2.1% growth in January.

Spanish Retail Sales Decline, Annual Inflation Flat

Spanish retail sales dropped for an eighth consecutive month in February, latest data from the National Statistics Institute said.

The unadjusted retail sales fell 4.8% annually in February faster than January''s 4.7% decline. Employment in the retail sector decreased 0.5% in February compared with January''s 0.7% fall.

Spanish consumer prices rose 3.6% on an annual basis in March, the same rate of increase as seen in February, the flash estimate from the statistics office INE showed.

The Spanish economy is expected to grow 0.8% in 2011 and 1.5% in 2012, the Bank of Spain said today. The central bank expects Spain''s unemployment to rise in 2011 and will only begin to fall slightly in 2012.

Hungarian Factory Price Inflation Eases

Hungary''s producer price index rose 6.3% annually in February compared to the 7% rise in January, data from the country''s statistics office showed today.

On a monthly basis, producer prices edged up 0.2% in February after recording a flat reading for the past two months.

Portugal Economic Sentiment Falls, Retail Sales Slows, Factory Output Rises

Portugal economic confidence indicator dropped to minus 1.4 in March from minus 1.3 points in February, survey data from Statistics Portugal showed on Wednesday.

The consumer confidence indicator rose to minus 48.4 in March from minus 49.1 in February.

Portugal''s retail sales decreased 4.6% annually in February after falling 7.1% in January, the statistics office reported. Excluding fuel, retail sales dropped 4.5% in February compared to a 6.8% decline in January.

On a monthly basis, retail sales increased 1.2% in February after a 3.9% slump in January. Sales excluding fuel rose 1.3% in February following the 4.2% decline in January.

Portugal''s industrial production increased a calendar-adjusted 0.9% annually in February from the 0.7% decline recorded in January, data from the National Institute of Statistics showed.

Production in the mining sector surged 45.2% in February, significantly faster than the 5.2% growth seen in January.

On a monthly basis, production grew a seasonally-adjusted 1.5% in February, reversing January''s 3.7% fall.