FMCG GROWTH IN EUROPE IMPROVES
FMCG (nominal turnover) growth in Europe improved to +3.7% in the third quarter of 2018, despite a slowdown in GDP in the euro area, driven by stable consumer confidence and continued moderate inflation.
As a result, annual nominal sales growth in Europe also improved to +3.7%, the highest since 2012.
The annual inflation rate in Europe is stable at +1.7% and is expected to be similarly high in 2019 (source Eurostat).
Thanks to the good summer in most Western European countries, stronger growth in the UK, the Netherlands, Belgium and Germany, events such as the World Cup and the continuation of moderate inflation, volume growth has recovered and is back in the 18-month trend of +1%. This is slightly above the growth of +0.7% at the same time last year.
Looking to the future, i.e. a less favourable external environment, an economic recovery emerging in some countries, new political uncertainties and higher oil prices, which are burdening consumers with higher energy and travel costs, we could approach a peak in FMCG growth in Europe.