Wilder on ‘Real retail sales in Europe: will German consumers save the day? Maybe, perhaps’

My comment is off topic:

I would like to see a comparison of U.S. and EU-15 retail sales.  I’ve thought for some time that the U.S. and EU-15 comparison should be made in reviewing global economic performances.

I understand that the population of the EU-15 is larger than that of the U.S. on the order of 80 million or so.  As such, the retail sales “advantage” should go to the EU-15.

My expectation is that U.S. retail sales on a monthly basis exceed the EU-15 volume of retail sales.

If U.S. retail sales exceed those of the EU-15, both before and after the recession, what does that say about the calls for more U.S. demand?

The comparison could also indicate the levels of household credit used by U.S. and EU-15 residents.

This type of analysis might spark more interest in international economic news and data.  It might attract a broader audience at AB that is more interested in macro economic issues.

Rebecca,

I am seeking a rollup of such data (added together). That has more meaning if compared to U.S. economic performances. Viewing the performances of individual European countries is fine for many discussions, but that doesn’t create much of an impression if comparing the USA to Europe. I choose the EU-15 for a reason, as it is easily recognizable and it’s a good comparison economically.

As you know, the EU15 is comprised of Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the United Kingdom.

I believe that Germany, Italy, and Spain only make up roughly 49% of the EU-15 population.

What I am interested in is a cumulative rollup for EU-15 retail sales data. Eurostat doesn’t list “retail sales” as a category of economic data as far as I can determine.

Here is an example of the type of comparison I am recommending:

Private final consumption expenditure, current prices
Million EUR (SA)
http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&language=en&pcode=teina020&plugin=1

2011Q1
EU-15 1693677.7
Euro area 1353735.8
USA 1931962.7

2008Q3
EU-15 1655677.8
Euro area 1312619.2
USA 1683687.7

* Euro area (16 countries)

It’s hard to attract interest in international economics on these American econ blogs due to a serious lack of focus by most American economist bloggers, and American readers of such blogs.

I am recommending a comparison tool that may draw more interest. The same can be accomplished for all regions of the world. Essentially, it would appear that many American economist bloggers don’t have personal interest […]

Rebecca,

I know that your articles are only oriented to Europe.  That’s fine for your personal blog. 

I am trying to help improve general readership at AB and elsewhere on the majority of American econ blogs.   

Again, there is no way that Germany, Italy, and Spain represent 60% of the population of the EU-15 or the euro area.  I believe it’s closer to 49% for the EU-15 and even less for the euro area (EA-17). 

Thanks for the report.  Unfortunately, it doesn’t state Euro values. 

MG,

P.S. I understand that you are trying to help. I do address Europe more so on News N Economics, given that I found some time ago that the detail to which I describe European economics is of less interest here at AB.

I apologize if my tone is somewhat unprofessional.

Rebecca

Rebecca:
You are kidding, correct? I work for Germans in automotive and in electronics. I also state to my German boss, I am the only process person he has who can walk into a factory and analyyze it.

European economics and politics is of interest to me as I often time tease my German bosses about their alleged desires to go back to the Deutsch Mark which they rapidly deny. Without the rest of Europe and changing Euros to $dollars, they would be doomed in selling their product anywhere else in Europe. The Euro is the great equalizer for Germany making their product more affordable. The US is a low cost country when compared to Germany.

Keep posting here, as I read it the same as Linda Beals and Beverly Mann. Email me please as I have more to say on the matter.

Rebecca – “I do not compare the EU to the US because that’s nonsensical for most economic and policy circumstances, except one based on population. There are many different currencies and fiscal policies that make up the EU. The EU budget it tiny and really just facilitates economic interaction across the borders.”
 
Your first sentence provides an indication, unfortunately, of your lack of professional experience in working with or working for manufacturers, intermediate goods, and finished goods suppliers who have considerable interest in the marketplaces of the EU-15, EU-17, and EU-27.  In the real world of product manufacturing, sales, marketing,  and distribution, there is nothing nonsensical about the general economic conditions, taxation, and other government polices of those nations.  In truth, there are very few currencies in the EU-15 and, in point of fact, that is not an overriding issue for marketshare sales with the exception of exchanges rates while generating sales.  Ask any of the automobile or electronic goods manufacturers.  Plenty of goods from different regions of the world were sold in Europe before the Euro was rolled out.  Sales don’t wait for such changes.   
 
That you fail to note the regional marketplace considerations doesn’t mean that you’re right that it is nonsensical to compare the EU or EU-15 to the US.  Quite the opposite is true for major corporations and smaller corporations engaged in global sales.  The EU, EU-15, and US comparisons are made in conference rooms and board rooms all over the United States, and other nations for that matter.  And those comparisons in production costs  and product sales are not only warranted, but serve as career makers and breakers. 
 
Your primary focus on the EU and your treatment of it in isolation is a severe limitation in my judgment.  I have encountered similar thinking over the years, but few of those individuals survived many conference and board meetings.  For good reason.  I have sat through plenty of meetings where podium presenters pitched their single country sales info without any consideration of regional performances (EU-15, for example) as compared to other regions in the world (U.S. or North American sales, for example).  And some of those corporations suffered sales losses until such time as regional comparisons became a primary focus as they should be.  I have always enjoyed the stream of excuses why a country sales leader couldn’t explain how his market’s considerable discretionary spending could be tapped for additional sales.  But the days of blowing off regional sales comparisons are long gone, as should be the case. 
 
I grant that you may not be the right economist or analyst to make any presentations on regional economic performances in light of your prejudice on the subject.  I raised a simple issue, retail sales, and recommended a regional comparison of such sales in the EU-15 and the United States.  It’s a valid regional comparison whether you understand it or not. 
 
Your general posts are very good, but if the goal is to spark greater reading interest on this side of the Big Pond, I have suggested ways that may help grow the readership audience not only on Angry Bear but elsewhere. 
 
I respect the fact that the choice is yours, but thinking that comparison of major regional economic performances are nonsensical is well short of the reality of business economics and ag economics.  You may not grasp the concept but thousands of business leaders do.