Eurozone retail sales improves slower than expected in May

By Tuba Ongun

Euro area retail sales posted a slower-than-expected recovery in May compared to a month ago, according to data released on Friday.

The volume of retail trade both in the eurozone and the EU returned to growth by 0.1% on a monthly basis in May, following a revised 0.2% decline in April, Eurostat data showed.

The market expectation was a 0.2% month-on-month hike in May.

Sales volumes in the eurozone increased by 0.7% for food, drinks, and tobacco and 0.4% for automotive fuel, while non-food product sales decreased by 0.2%.

On an annual basis, retail sales grew by 0.3% in the euro area and by 0.6% in the EU in May.

Among EU members for which data are available, the highest monthly hikes were seen in Denmark (2.3%), Lithuania (1.8%), and Luxembourg (1.7%), while the largest falls were in Slovakia (down 1.0%), Ireland (down 0.9%), Bulgaria, and Malta (both down 0.8%).

The eurozone/euro area, or EA19, represents member states that use the bloc's single currency, the euro, while the EU27 includes all member countries.