Eurozone retail sales disappoint in November

(Sharecast News) - Eurozone retail sales grew by less than expected in November, official data showed on Thursday, as the bloc's economy continued to struggle. According to first estimates from Eurostat, the statistical office of the European Union, retail trade volume increased by 0.1%. Although an improvement on October's 0.3% decline, it was below the 0.4% expected by analysts, according to Reuters.

In the wider bloc, retail trade volume rose 0.2%, compared to the 0.1% fall in October.

Year-on-year, the retail sales index rose by 1.2% in the Eurozone and by 1.5% in the EU.

The weakest-performing category in November in the Eurozone was non-food products, excluding automotive fuel, which saw a 0.6% decline.

That contrasted to respective increases of 0.1% and 0.8% in food, drinks and tobacco, and in automotive fuels in specialised stores.

Among member states, sales worsened in Germany, the bloc's biggest economy. The volume of retail trade fell 0.6% in November, a widening of October's 0.3% decline.

Sales fell 0.6% in Spain but rose 0.3% in France. Data for Italy was not made available.

The European economy has struggled to find its footing after being rocked by surging inflation and higher interest rates. Although both are now significantly lower, consumers remain cautious and confidence is low.

Daniel Kral, lead economist at Oxford Economics, said: "An uptick in Eurozone inflation, slowing pay growth - with the European Central Bank's wage tracker up by just 1.2% year-on-year in November-December - and a drop in consumer confidence present strong headwinds for a strong near-term recovery in consumer spending."