Retail sales in the Eurozone dropped more than predicted, with non-food sectors experiencing a decline, except for Spain, which exhibited growth against the prevailing trend.
Retail activity in the Eurozone decreases by 0.3% in September.
Non-food industries drive the decrease, while the food category remains robust.
Spain bucks the trend with significant growth in retail sales.
In the Eurostat's recent update, retail trade volume in both the euro area and the European Union (EU) experienced a slight decline in September 2023. The 0.3% reduction in the euro area surpassed market expectations, which had foreseen a 0.2% decrease.
This decline follows a more substantial drop in August 2023, signaling a pattern of decreased consumer expenditure. When analyzed by sector, non-food products saw the most significant decline, while sales of food, drinks, and tobacco demonstrated resilience, even showing growth. Geographic variations were also apparent, with certain member states such as Slovakia and Sweden observing steeper declines, and others like Slovenia and Poland experiencing an increase in retail volumes.
The year-on-year comparison paints a grim picture, revealing a nearly 3% reduction in retail trade volume within the euro area compared to the previous year. The decline was led by automotive fuels, reflecting broader economic pressures, while essential goods like food maintained a steadier trajectory.
Despite the overall downward trend, certain member states defied the trend, with Spain notably recording a 7.5% annual surge in retail trade volume. This indicates that while the overall market sentiment is subdued, pockets of retail resilience and growth persist.
The near-term outlook for the euro area's retail sector remains pessimistic, with the data indicating ongoing consumer caution amid economic uncertainties. The performance of retail trade is likely to hinge on broader economic patterns and consumer confidence levels in the upcoming months.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
Comment (0)