Spain retail sales and employment decline in July

Retail sales in Spain fell by 0.2% in July compared to the same month in the previous year, according to data from the National Statistics Institute (INE). This decline marks the end of a 43-month streak of year-on-year increases in seasonally adjusted figures. When seasonal and calendar effects are removed, monthly sales decreased by 0.9% between June and July.

The labor market in the retail sector also saw a contraction, with employment dropping by 0.1% year-on-year. This shift ends a period of 58 consecutive months of growth in retail employment across Spain. While large chains and supermarkets saw sales increases of 5.1%, smaller chains experienced a 7.1% reduction in turnover.

In contrast to the national trend, the region of Castilla-La Mancha showed significant growth. Retail sales in the region rose by 2.3%, making it one of the top-performing autonomous communities in the country, trailing only Aragon and Murcia. Additionally, employment in Castilla-La Mancha's retail sector grew by 1.3% year-on-year, outperforming the national average.