Eurozone’s fragile economic growth continues

<p>Economic growth for the eurozone remains fragile.</p>

New data shows the economic growth of the eurozone remains in a fragile state.

According to figures released by Eurostat, the EU's statistics agency, there was a 0.6 per cent drop in retail sales in the 17-nation bloc in September compared to the previous month.

Markit's composite purchasing managers' index dropped from 52.2 points in September to 51.9 points in October, showing the eurozone is still struggling to recover from the recession.

Howard Archer, chief economist at Global Insight, explained the data shows members of the public are still "cautious" about spending.

He added: "Significantly, retail sales fell back sharply in Portugal – by 6.2 per cent month-on-month – and Spain – by 2.5 per cent month-on-month – in September."

Mr Archer pointed out that German consumers have also been reluctant to start spending again, despite the country's economic position being strong compared to much of Europe.

Data from Eurostat recently revealed that inflation in the eurozone is now down to 0.7 per cent.

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