Eurozone retail sales rose just 0.1% m/m in August, missing the 0.2% consensus forecast and following a 0.6% drop in July. Non-food spending outside automotive fuel strengthened, but fuel sales fell and country performance stayed mixed, leaving the overall consumption picture soft.
Eurozone retail sales rose 0.1% m/m in August, undershooting the 0.2% increase economists had expected. The reading followed a 0.6% decline in July. On an annual basis, retail trade volume climbed 0.8% y/y, up from a revised 0.4% in July.
The underlying mix was stronger than the headline suggests. Non-food sales excluding automotive fuel rose 0.5% m/m, reversing part of July's 1.2% fall, while food, drinks and tobacco sales edged up 0.1%. The main drag came from automotive fuel, where volumes dropped 1.9% m/m and were down 3.7% from a year earlier. Non-food sales were up 1.7% y/y, while food sales rose 1.6% y/y over the same period.
Performance across the bloc's largest economies diverged. Germany rebounded 1.3% m/m after a 3.2% fall in July, while Spain rose 0.3% and Italy added 0.1%. France moved the other way, with sales falling 1.1% m/m after rising 0.8% in July.
Taken together, the data point to a tentative recovery in discretionary spending outside fuel, but the broader consumption picture remains uneven. The headline miss against the 0.2% consensus suggests household demand has yet to show a decisive rebound.
Source: ActionForex
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