Brussels, May 4 (Bloomberg) -- Retail sales in the 12 countries thatshare the euro grew less than expected in February, as concern aboutjob losses and falling stock markets offset income-tax cuts aimed atboosting spending power. Retailers sold 0.1 percent more in February, the European Unionstatistics office said. Economists had expected a 0.3 percent monthlygain. In the year, sales rose 1.2 percent. ``Retail sales growth is by no means rampant,'' said Ken Wattret, aneconomist at BNP Paribas in London. ``Tax changes are helpingsentiment but haven't boosted spending.'' Germany, France and Italy, Europe's three biggest economies, cut taxesto boost consumer spending as a global slowdown crimps exports. Thecuts have had little effect on Germany so far, while consumer spending inFrance rose in March and Italian consumers were more optimistic inApril. Sales in Germany, the region's largest economy, fell 2 percent inFebruary, Eurostat said. Italian sales were unchanged. The report did notinclude figures for France. The Dow Jones Europe Stoxx 50 index, which groups 50 European blue-chip stocks, fell 10 percent in February. ``Financial investments are extremely important for consumers,'' saidMauro Bussoni, a deputy director at Italian retailer' group Confesercenti.``When there's uncertainty about the markets they'll spend less.''
Job Losses
Consumer concern about job cuts is also curtailing spending. Marks &Spencer Plc, the U.K.'s biggest clothing retailer, plans to close 18 Frenchstores this year, with the loss of 1,700 jobs. European companiesincluding Germany's Siemens AG have said they will have to shedworkers. Moulinex SA, France's second-largest maker of appliances, said lastmonth it will shed 4,000 jobs over two years, or a fifth of its workforce.Rivals such as Electrolux AB, Whirlpool Corp. and Maytag Corp. have allreported lower profit this year. Europe-wide spending on household goods, such as refrigerators,declined 0.7 percent in February, while spending on food, drinks andtobacco fell 0.4 percent, today's report showed. The European Commission, the executive arm of the European Union,last week cut its forecast for expansion in the common currency nationsto 2.8 percent from 3.2 percent. In January, retailers sold 0.5 percent more, revised from the previouslyreported 0.4 percent, the EU statistics office said. Retail sales in the 15 members of the EU were unchanged in February,after a revised 0.4 percent gain in January, and rose 1.9 percent from ayear earlier, Eurostat said.