Eurozone retail sales see largest decline in 14 months

(Sharecast News) - Eurozone retail sales fell unexpectedly in July, registering their sharpest monthly decline in over a year, according to figures released by Eurostat on Friday. The seasonally adjusted volume of retail trade declined 0.6% month-on-month, compared with expectations for a 0.3% increase. June's reading was upwardly revised to show growth of 0.2%.

The July contraction was the steepest monthly fall since May 2025, when retail trade volumes declined sharply.

The weakness was driven primarily by non-food products, where sales volumes dropped 1.4% compared with June. Sales of automotive fuel in specialised stores were down 0.8%, while food, drinks and tobacco provided some support, rising 0.4%.

Food, drinks and tobacco sales increased 1.6% year-on-year, while non-food sales edged up 0.2%. Automotive fuel sales fell 3.1% compared with the same month a year earlier.

On an annual basis, euro-area retail trade volumes were 0.6% higher than in July 2025.