Retails Sales.....Europe

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European retail sales were good in the month of February. But then what happened in March is the question. The reason is that retail sales fell in March and consumer confidence dropped across the region as inflation and higher credit costs and declining house prices sapped spending. There has been rise in the food and energy prices and that has been eroding the living standards and stoking inflation. This has limited the scope for central banks to cut interest rates just as higher rates just as credit costs hur Europe’s economy. The housing prices in Europe rose at a snail’s pace in this year.

The root cause of this problem is a squeeze on real income growth. And this can be a greater impact on consumer pyschology. The European stocks also had a snail pace growth. The European central bank and the England bank are trying hard to damp the inflation and also at the same time avoid the U.S recession impact. I hope they should achieve this target.