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Retail sales in the eurozone saw only a modest increase in July, as the recovery remained elusive, according to data released by Eurostat, the European Union’s statistics office. The seasonally-adjusted retail trade volume in the eurozone rose by just 0.1% in June, while sales across the broader EU increased by 0.2%. This followed a 0.4% decline in sales for both the eurozone and the wider EU in June.
In July, the eurozone experienced a slight uptick in food, drink, and tobacco sales, which grew by 0.4%, and a marginal 0.1% increase in non-food product sales. However, sales of automotive goods in specialized stores decreased by 1%. Among the member states, Spain reported a 0.5% rise in sales, and France saw a 0.1% increase. Data from Italy and Germany, the largest economy in the bloc, was not available.
Compared to the same period last year, retail sales fell by 0.1% in the eurozone and 0.4% in the EU. This was contrary to the anticipated slight increase of 0.1% in the eurozone.
Bert Colijn, a senior economist for the eurozone at ING, commented on the figures, noting that the economy does not appear to be accelerating following a surprisingly robust first half of the year. Instead, there seems to be a slight deceleration at present. Colijn described the retail sales data as "not particularly encouraging" and indicated that there is no clear evidence of a genuine recovery underway.
He attributed the sluggish retail performance to several factors, including the reopening of services post-pandemic and a decline in real incomes among Europeans, which has limited consumption of goods. These elements have contributed to the ongoing challenges facing the retail sector, preventing a more robust economic rebound.
