Eurozone and EU Retail Sales Rise in May

Retail sales increased across the European Union and the eurozone in May, reversing a decline seen in April. Eurostat reported that eurozone retail sales rose 0.2% month-on-month, while the broader European Union saw a 0.5% monthly increase. On an annual basis, the eurozone grew by 1.6% and the EU by 1.9%, with the eurozone figure slightly exceeding market expectations of 1.5%.

The growth was primarily driven by a 0.6% rise in spending on food, drinks, and tobacco, alongside a 0.1% increase in non-food products. Conversely, automotive fuel sales fell 0.5%.

Regional performance varied significantly across member states. Cyprus recorded the strongest annual growth at 8.4%, followed closely by Bulgaria with a 7.9% year-over-year surge and a 0.8% monthly increase. Romania experienced the sharpest annual decline at 4.0%. In Slovakia, the Statistical Office of the Slovak Republic noted a 0.9% year-on-year increase in May, supported by specialized stores despite declines in supermarkets and e-shops. Other strong monthly gains occurred in Luxembourg and Poland, while Estonia, Croatia, Belgium, and Lithuania saw declines.