Nielsen, the research firm, reported that FMCG sales in Europe rose by just 0.8% in value terms in the second quarter, the first time this figure has fallen below 1% since it starting publishing data in 2007. This marks a decline from totals of over 6% recorded in 2007 and 2008, 3.2% in 2009 and 2.5% in Q1 2010.

In all, 15 of the 21 countries assessed generated weaker growth in volume sales in Q2 than Q1. Nielsen expects this trend to continue until the European consumer is convinced that recovery has firmly taken hold.

Conditions were most adverse in Greece and Finland, both off by 4.8%, with the latter nation experiencing a contraction despite a 2% uptick in the proportion of products sold.

Germany registered a 2.1% decrease, as a 1% increase in cost terms was undermined by a 4% fall in the number of acquisitions made.Italy witnessed a similar shift, following a 1% jump in the opening three months of the year with a 1.7% reduction during the next quarter.The Czech Republic, Poland, Sweden, Denmark and Ireland also saw modest drops, and Austria, Portugal and Switzerland were largely flat. More positively, three primary markets in the region provided meaningful growth, with Spain up by 1.9%, France by 2.1% and the UK by 3.2%.

Consumers in the UK, Italy and Spain typically spent the same amount of money when visiting stores in Q2, but are buying national brands to a somewhat greater extent than previously. Elsewhere, Slovakia benefited from a 4% improvement, wholly thanks to its volume figures as the net worth of sales was static.

Turkey enjoyed the highest expansion on 6.5%, although several other developing markets did not perform as strongly

The east-west divide seen in Q1 remained in place in Q2. Western Europe, while still posting disappointing results, was fundamentally stronger than Eastern Europe.

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