Eurozone Retail Sales Fall 0.6% in July

Retail sales in the Eurozone fell 0.6% month-on-month in July, missing analyst expectations of a 0.3% increase. The decline was driven by a drop in discretionary spending, with non-food sales falling 1.4% and automotive fuel decreasing 0.8%. Conversely, sales of food, drinks, and tobacco rose 0.4%.

Performance varied significantly across major economies. Germany saw the steepest decline at 3.4%, followed by Spain at 0.9% and Italy at 0.3%. France was the outlier among the group, recording a 0.9% increase.

On an annual basis, sales grew 0.6%, marking a slowdown from the 1.4% growth seen in June. While the July data suggests a loss of consumer momentum at the start of the third quarter, a significant upward revision to June figures—from -0.3% to +0.2%—indicates the July drop may not represent a definitive deterioration in the overall economic trend.