Retail sales across the eurozone dropped unexpectedly in June after rising moderately in May, suggesting that consumption continues to weigh on the economy in the second quarter, official data revealed on Thursday.
Retail sales decreased 0.3% in June from May, Eurostat reported. Sales had increased 0.4% in May but fell 0.4% in April.
The decline came in contrast to economists' expectations for a slight increase of 0.1%.
ING economist Peter Vanden Houte said data reinforced the view that consumption was not a major driver of growth in the second quarter. Some improvement can be expected, but a genuine consumption boom looks unlikely at this stage, he noted.
Sales of food, drinks and tobacco fell 0.5% and that of non-food products slid 0.4%. Meanwhile, sales of automotive fuel in specialized stores increased 1.5%.
On a yearly basis, retail sales posted an expansion of 0.7%, which was weaker than the prior month's 1.9% increase and economists' forecast of 1.0% growth.
Retail sales in the European Union edged down 0.1% from May but increased 1.2% from the previous year.
Among member states of the EU, the largest monthly decreases in sales volume were reported in Finland, Romania and Germany. Meanwhile, Luxembourg, Portugal, Croatia and Sweden registered the highest increases.
