Retail sales drop for second month in a row

German retail sales showed a surprise drop of 0.2 percent in August from the previous month, according to provisional, seasonally-corrected figures released Friday by the national statistics office.It was the second fall in a row, following a 0.4 percent slide in July and cast doubt on the strength of recovery in traditionally reticent German consumption.Analysts polled by Dow Jones Newswires had forecast an increase of 0.5 percent on the month.On an annual basis however, retail sales in the biggest European economy gained 2.2 percent, the Destatis data showed.

This is the third day in a row that an attempt to mount an overnight ramp out of the US has fizzled, with first the Nikkei closing down for the second day in a row and snapping a week-long rally, and then the Shanghai Composite following suit with its 5th consecutive drop in a row (perhaps it was drinking piggy water?) as the rumblings out of the PBOC on the inflation front get louder and louder, following PBOC governor Zhou's statement that inflation expectations must be stabilized and that great importance must be attached to inflation.

Is the worst over for the Eurozone? That's what the ECB and heads of state said at the recent economic summit in Davos. I offer some economic reality. Eurozone Sales Collapse 15th Month and Wholesale Prices Soar The Markit Eurozone Retail PMI® shows Eurozone retail sales downturn extends to fifteenth month in January Key points:

Inquiring minds are noting the expected (at least in this corner) collapse in European retail sales as measured by PMI indices in Italy, France, and Germany, the three largest Eurozone economies. Earlier today I took a look at France. For details, please see France Economic Implosion Underway; French Retail Sales Contract 9th Consecutive Month as Cost Inflation Surges.

OTTAWA — Statistics Canada says retail sales rose 1.0% in January to $38.9 billion, after a drop in December. The increase was slightly above expectations of a 0.9% rise. The agency says the increase was spurred by higher sales at motor vehicle and parts dealers. Gains were reported in seven of 11 subsectors, representing 52% of all retail trade. Sales at motor vehicle and parts dealers were up 2.8% in January, partially offsetting the 6.5% drop in December. The biggest drop was at gasoline stations, the third month in a row sales have decreased.

Inquiring minds are noting the expected (at least in this corner) collapse in European retail sales as measured by PMI indices. The spotlight for this post is France, the second largest Eurozone economy following Germany. The Markit France Retail PMI® shows French retail sales fall for ninth consecutive month. Key points:

Dismal economic conditions in the eurozone accelerate to the downside as evidenced by falling retail sales. Let's take a look at the Eurozone in aggregate, as well as the three largest countries. Eurozone Retail Sales Drop Sharply The Markit Eurozone Retail PMI® shows Eurozone retail sales continue to fall sharply towards end of 2012. Key points

Eurozone retail sales fell only slightly this month, but it was the 5th consecutive month, and the worst quarter since the 1st quarter of 2010. Please consider Markit Eurozone Retail PMI® March 2012.