Eurozone Retail Sales Decline in July, Led by Slump in Auto Fuel, Eurostat Data Shows
Eurostat data released on Wednesday revealed that retail sales in the Eurozone declined in July, led by a significant slump in sales of auto fuel. This marks the first decline in retail sales in four months and surpassed economists’ expectations.
The data indicates that retail sales fell by 0.2 percent on a monthly basis in July, slightly higher than the anticipated 0.1 percent drop. The previous month’s reported decrease of 0.3 percent in June was revised to show a growth of 0.2 percent.
The decline in July’s retail sales was mainly driven by a consecutive drop in sales of automotive fuel in specialized stores, witnessing a 1.2 percent decrease. On the other hand, the food, drinks, and tobacco category experienced a sales growth of 0.4 percent. Meanwhile, the non-food products excluding auto fuel segment recorded a 0.5 percent increase.
Interesting trends were observed in other sectors as well. Mail orders and internet sales saw a substantial growth of 3.8 percent in July, more than double the 1.5 percent increase in June.
On a year-on-year basis, Eurozone retail sales continued to deteriorate, with a 1.0 percent decline in both July and June. Similarly, the European Union witnessed a monthly shrinkage of 0.3 percent in retail sales volume for July, following a 0.2 percent gain in the previous month. Year-on-year, retail sales in the EU dropped by 1.2 percent in July.
Among EU member states, Denmark and Ireland recorded the most severe declines in monthly retail sales, while Portugal, Sweden, and Cyprus enjoyed notable gains.
The latest data highlights the ongoing challenges faced by the Eurozone retail sector. Despite some sectors experiencing growth, the overall decline in retail sales suggests a cautious consumer sentiment amid economic uncertainties.
