Mixed news from Europe

The news from Europe yesterday was mixed.

Retail sales were up in July, as reported by Eurostat:

In July 2006, compared to July 2005, the volume of retail trade grew by 2.5% in the euro area and by 3.3% in the EU25. Compared to June 2006, the retail sales index rose by 0.6% in the euro area and by 0.3% in the EU25.

But services sector growth in the euro zone eased in August, as AFX News reports:

The purchasing managers' index for the services sector slowed for the second month in a row... The headline index eased to 57.1 in August from 57.9 in July and a six-year high of 60.7 in June...

There were falls in Germany and Italy while France registered a small rise from the previous month.

The UK service sector also slowed in August. Reuters reports:

The Chartered Institute of Purchasing and Supply/Royal Bank of Scotland services business index slipped for a fourth month to 56.7 from 57.9 in July.

UK consumer confidence also fell in August, according to the Nationwide Building Society's consumer confidence index, but retail sales growth held up in August, with the British Retail Consortium reporting that like-for-like sales grew 2.5 percent on a year ago while total sales rose 5.5 percent.