Madrid: Spanish retail sales rose for the sixth straight month in January, another sign of gathering domestic demand that is helping fuel an economic recovery after years in or near recession.
After registering its first noticeable annual expansion for five years in 2014, Spain’s economy is expected to grow as much as 2.5 per cent this year as consumer confidence grows and shoppers return to stores.
Sales rose 4.1 per cent on a calendar-adjusted basis in January, the National Statistics Institute (INE) said on Tuesday, following a revised 6.3 per cent increase in December, the strongest growth registered since 2003.
“This was more moderate growth than last month but more sustainable,” said Jose Luis Martinez, an economist at Citi, noting Spanish households’ relatively high debt levels and low rates of saving.
Martinez said the slower pace of retail sales growth in January compared with December may have reflected concerns over developments in Greece, which elected a leftist government opposed to the terms of its bailout.
Retail sales have grown in nine of the past 10 months after mostly falling over a three-year period.
Large chain stores were the biggest beneficiaries, with their sales 5.9 per cent higher in January than a year before, the strongest rise since 2011. Food sales rose 2.9 per cent.
Spain’s largest supermarket Mercadona said on Thursday consumption was picking up, helped by rising tourist numbers.
Rival DIA also expects shoppers in Spain to spend more at its stores this year after a tough fourth-quarter in its home market.
Large domestic item sales rose 3.2 per cent year-on-year in January, as Spanish households started to replace ageing white goods like washing machines and fridges, and spending on smaller, personal items, including clothing, rose 2.5 per cent.
