From Fortune:
The debate over whether falling oil prices is good for the Eurozone economy (because it leaves more money in people’s pockets) or bad for it (because it adds to pressures that could start a deflationary spiral) lurched in favor of the optimists Wednesday, as new figures showed retail sales rose at their fastest annual rate in almost eight years in December.
Separately, surveys of the region’s services sector, which makes up the bulk of economic output, also showed a strong start to the new year.
Eurostat said retail sales rose by a seasonally-adjusted 0.3% in December from November. It also revised up its estimates for the two previous months to increases of 0.7%, marking a clear improvement across the quarter. Sales were up 2.8% on the year, clearly above a consensus forecast of 2.0%.
Earlier, research firm Markit Economics had said its Purchasing Managers Index for the Eurozone’s services sector had risen to a level of 52.7 in January from 51.6 in December. An index reading above 50 typically signals expansion....MORE
