Financial turmoil in the Euro-zone continues to dominate headlines across the globe as the levels of sovereign debt become clear. As households are subjected to a negative media onslaught on a daily basis it is unsurprising that they are becoming increasingly reticent to spend on anything other than essentials. Across Western Europe nominal growth reached a disappointing 4.5 percent versus 5.2 percent in the previous quarter, with the majority of growth fuelled by inflation. Indeed volumes grew by only 0.5 percent across the region as inflation continues to bite and in 6 countries price increases exceeded 5 percent.
Thirteen of the 21 countries have seen volumes decreasing with only Belgium, Norway and Turkey posting healthy volume growths. Growth is still generated in the main by price inflation: UK, Finland, Hungary, Denmark, Portugal, Sweden, Czech Republic and Italy completely rely on price to produce any growth.
For more country-by-country insight and a look at consumer confidence, download Nielsen's European Growth Reporter Q3 2011.