Retail sales in the eurozone unexpectedly fell in July

After retail sales in the euro area rose for the second month in a row in June and more sharply than indicated by the preliminary estimate, they fell unexpectedly in July. The development of sales in retail trade in July was mainly due to non-food products, but sales of food also decreased. This was pointed out by data published on Friday by the statistical office of the European Union, Eurostat. Retail sales in the euro area fell by 2.3% month on month in July, after rising 1.8 percent in June. Data for June were revised upwards, with a preliminary estimate pointing to growth of 1.5%. Although the markets expected a deterioration in development, they expected only a slowdown in growth to 0.1%. Year-on-year, retail sales in the euro area increased by 3.1%. Sales of non-food products decreased by 3.5%, while sales of online stores fell by 7.3%. Revenues from the sale of fuels also decreased (-1.6%), and for the fourth month in a row, revenues from the sale of food, non-alcoholic beverages and tobacco products decreased. The decrease reached 0.7%. Retail sales throughout the European Union also saw a turnaround. While they increased by 1.4% month-on-month in June, they fell by 1.9% in July. Year-on-year, retail sales in the EU increased by 3.8%. Among EU Member States, retail sales fell the most month-on-month in July in Ireland (-5.9%), Germany (-5.1%) and Austria (-3.9%). On the contrary, they increased the most in Croatia (2.5%), Malta (2.3%) and Luxembourg, where growth reached 2.2%. In Slovakia, they decreased by 0.3%. Year-on-year, retail sales increased the most in Bulgaria (20.2%), Croatia (12.9%) and Lithuania (12.4%). Luxembourg (-5.6%), Austria (-2.4%), Germany (0.3%) and Spain saw a decrease, where they decreased by 0.1%. In Slovakia, retail sales increased by 1.4% year-on-year.