- Retail sales m/m -0.7% vs -0.1% expected
- Prior +0.1%
- Retail sales y/y +0.4% vs +0.6% expected
- Prior +0.8%
- Full report
Eurozone retail sales declined more than expected in September, falling 0.7% m/m. Germany recorded the largest monthly decline, with retail sales falling 2.0%. The EU-wide figure also weakened, dropping 0.6% m/m. The decline was primarily driven by non-food products, where sales volumes dropped 1.2% in the euro area and 1.0% across the EU. Food, drinks and tobacco sales also weakened, falling 0.3% and 0.4%, respectively. Automotive fuel was the only category to record an increase, rising 1.0% in the euro area and 0.1% in the EU.
On an annual basis, however, retail trade volumes remained positive, increasing by 0.4% y/y in the euro area and 0.9% in the EU, although the data still missed expectations. Within the euro area, food, drinks and tobacco recorded the strongest annual growth at 1.1%, followed by non-food products at 0.7%. Automotive fuel sales remained under pressure, declining 3.0% y/y.
The September figures point to weakening consumer demand amid higher interest rates and elevated energy prices. The Retail Sales report is almost never a market-moving release and the data doesn’t change anything for the ECB as the central bank remains focused on inflation.
This article was written by Giuseppe Dellamotta at investinglive.com.