Spanish consumer spending above European average

SPAIN: The Spanish retail sector and the domestic demand have returned to growth, showing an increase in sales of approximately 2%. Spain records the fourth biggest increase in consumer consumption in November 2013, after Portugal (3,1%), Luxemburg (2,3%) and France (2,1%).

Just shortly before Christmas time, the sales in the retail sector in November 2013 showed an upturn of 1,9 % compared to October 2013, and an increase of 2,1% compared to November 2012.

According to the European Commission’s official statistic office EUROSTAT, both numbers are higher than the consumer consumption average-growth-rate in other European countries, which was about 1,6% in the Eurozone and about 2%, including all 28 European Union members, related to November 2012,  and 1,4% (Eurozone) and 1,2% (EU) compared to October 2013.

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Some of the winners are the big retail companies. They stated an increase in their sales of 5% – 8% compared to the same period during 2012. Furthermore this positive trend in the evolution of the domestic demand, also spills over to other sectors and industries than the retail sector, like for example the service sector,(e.g. hospitality sector) and even was the driver of the rise in salaries in November 2013. Thus, according to the spanish Tax Agency “AEAT”  (Agencia Tributaria), there has been stated an increases in the average wage among the different sectors and industries, like the energy sector (+2%) or the service sector (0,4%), highlighting the hospitality sector with an increase of 0,9%.

According to a research, made by one of the spanish financial institutions “LA CAIXA”, those increasing numbers are an indication of recovery of the internal demand and rises the expectation for  continuing growth.

Source: “Expansión”,January 9th, 2014, printed version

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