Eurozone retail sales rise more than expected in June

(Sharecast News) - Eurozone retail sales rose more than expected in June, according to figures released on Wednesday by Eurostat. Retail sales in the bloc grew 3.1% on the same month a year earlier, beating expectations for a 2.6% jump.

Sales of food, drinks and tobacco rose 1.7%, while non-food products saw a 4.3% increase and sales of automotive fuel in specialised stores pushed up 4%.

On the month, sales rose 0.3% in June, slightly missing expectations of 0.4% growth. Food, drink and tobacco sales ticked up 0.2%, while non-food product sales were 0.7% higher and sales of automotive fuel were ahead 0.4%.

In the European Union, retail sales also rose 3.1% on the year and 0.3% on the month.

ING said the stronger retail sales rebound signals resilient consumer demand.

"With external headwinds such as tariffs and a stronger euro likely to weigh on exports, domestic demand is becoming increasingly vital for sustaining growth," it said.

"Fortunately, the labour market remains resilient. The unemployment rate fell to a historic low in June, and declining inflation is supporting real incomes. While this doesn't necessarily signal a consumer boom, the upward trend in consumer confidence since April suggests that household spending will continue to underpin economic growth in the second half of the year."