Eurozone retail sales fell -0.5% mom in July, steeper than expectations of a -0.2% mom decline. Food, drinks, and tobacco sales dropped -1.1%, while automotive fuel purchases slumped -1.7%. Non-food sales edged higher by just 0.2%, offering little offset to the overall weakness.
Across the broader EU, sales slipped -0.4% mom on the month. The divergence among member states was notable: Croatia (-4.0%), Estonia (-2.0%), and Germany (-1.5%) recorded the sharpest drops, while Lithuania (+1.5%), Latvia (+1.4%), and the Netherlands (+1.1%) posted gains.
