Eurozone retail sales rose just 0.1% m/m in August after falling 0.6% in July, missing expectations for a 0.2% increase. On an annual basis, retail trade volume increased 0.8% y/y, up from a revised 0.4% in July. The modest rebound suggests household demand stabilized after the previous month’s decline, but the recovery remained weak at the headline level.
The composition was somewhat firmer than the headline. Non-food sales excluding automotive fuel rose 0.5% m/m, reversing part of July’s 1.2% decline, while food, drinks and tobacco edged up 0.1%. The main drag came from automotive fuel, where sales volumes fell 1.9% m/m. Compared with a year earlier, non-food sales were up 1.7% and food sales 1.6%, while automotive fuel volumes were down 3.7%.
Performance across major economies was mixed. Germany rebounded 1.3% m/m after a 3.2% fall in July, while Spain rose 0.3% and Italy 0.1%. In contrast, France fell 1.1%, reversing the previous month’s gain. Overall, the release points to a tentative recovery in discretionary spending outside fuel, but the broader consumption picture remains uneven and too soft to suggest a strong rebound in household demand.
Data Summary
| Indicator | Aug | Jul |
|---|---|---|
| Retail sales m/m | 0.1% | -0.6% |
| Retail sales y/y | 0.8% | 0.4% |
| Food, drinks, tobacco m/m | 0.1% | -0.1% |
| Non-food ex-fuel m/m | 0.5% | -1.2% |
| Automotive fuel m/m | -1.9% | -0.2% |
Headline retail sales missed the 0.2% m/m consensus.
Key Takeaways
- Retail sales barely recovered: volumes rose 0.1% m/m after falling 0.6% in July.
- The rebound missed expectations: consensus was for a 0.2% increase.
- Annual growth improved: sales rose 0.8% y/y, up from a revised 0.4% in July.
- Non-food spending was the strongest component: sales excluding automotive fuel rose 0.5% m/m after a 1.2% decline in July.
- Fuel was the main drag: automotive fuel sales fell 1.9% m/m and were down 3.7% y/y.
- Food spending was broadly stable: food, drinks and tobacco sales rose 0.1% m/m.
- Germany rebounded strongly: retail sales rose 1.3% m/m after a 3.2% drop in July.
- France weakened: retail sales fell 1.1% m/m after rising 0.8% in July.
- The broader picture remains soft and uneven: discretionary spending recovered somewhat, but the overall increase was too small to signal a strong household-demand rebound.
