Eurozone growth up 1.1% in October

Euro zone retail sales rose 1.1 per cent in October from a year ago and September growth was revised down in figures published today, confirming household spending remains the economy's weak link.

Eurostat revised down September's retail sales growth to 1.1 per cent year-on-year from a first reading of 1.4 per cent. The monthly performance was also lowered to show a fall of 1.0 per cent from an originally reported slip of 0.6 per cent.

Economists watch sales figures closely for signs of how the ECB might conduct monetary policy to keep inflation under control.

As well as Thursday's expected increase in interest rates, many economists expect a further hike or two next year.

Private consumption has long been the weak point of the euro zone economy as slow wage growth, especially in Germany, combined with unemployment has restricted household spending.

The euro zone figures were published after German retail sales unexpectedly declined in October, undershooting all forecasts despite hopes that a 3 percentage point rise in sales tax on January 1st would spur spending this autumn.