Retail sales in the euro zone rose slightly in January but were lower on an annual basis as unemployment remained high, data showed today.
The European Union statistics office said retail sales rose by 0.3 per cent in January from December but were 0.6 per cent below the level of January 2004.
Officials had long pinned their hopes for growth in 2005 on stronger consumer spending to make up for weaker demand for euro zone exports due to the strong euro and slower global growth.
But the minor rise in January retail sales and the continued threat of unemployment confirms the shaky prospects for 2005, and this week both the European Central Bank and the International Monetary Fund cut their growth forecasts.