According to the report from the National Statistics Institute (INE), retail sales increased significantly last month, indicating high consumer demand.
The data showed that retail sales increased by 4.9% per annum in November after a 0.7% decline in October. Such a strong increase reflecting a rebound in domestic consumption and a low base year triggered by the coronavirus pandemic. Economists had expected a 1% increase. On a monthly basis, retail sales jumped 5.1% after a 0.1% decline in October. The latest increase was the largest since June 2020. Economists had expected an increase of 0.2%.
INE reported that sales of non-food products increased by 7.0% per annum, while sales of food products increased by 1.6% per annum.
However, experts warn that the spread of a new strain of Omicron coronavirus in December, along with stricter restrictions, is likely to negatively affect activity in the service sector at the end of the year and cause a decrease in consumer spending. Spain's economy has been most affected by the Covid-19 pandemic in the eurozone, and GDP is currently about 6% lower than before the pandemic.