February 1, 2012
New economic data brought more signs that the euro-zone economy contracted at the end of last year, with December consumer spending in the currency area's two largest economies dropping sharply and unemployment staying elevated throughout the region.
Retail sales in the last month of 2011 fell unexpectedly in Germany and France, the two economies expected to support weaker countries along the region's southern fringe. Italy's downturn, meanwhile, showed no sign of letting up, with unemployment reaching its highest level in more than a decade.
The reports suggest euro-zone gross domestic product fell 1% to 1.5% in the fourth quarter, at an annualized rate, economists said. Those figures are due on Feb. 15. Data for January suggest some improvement in the first quarter.
A steady unemployment rate across the region, albeit at a more-than-13-year high of 10.4%, hid rises in many member states, including Italy, where the unemployment rate climbed to 8.9% in December and total unemployment rose to 2.24 million, the highest level since the first quarter of 2001.
The data keep the door open to further stimulus from the European Central Bank.
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