Euro area retail sales fall by more than expected in August

Retail sales in the euro area fell more quickly than expected last month.

According to Eurostat, in seasonally adjusted terms, the volume of retail sales within the single currency block dipped at a month-on-month pace of 0.3% in August (consensus: -0.4%).

However, July's data were revised to show a drop of 0.4%, down from an initial estimate of a rise of 0.3%.

That left retail sales down by 2.0% in August versus the same month one year earlier (consensus: -1.7%).

Mail order and internet saw the largest decline, of -3.8% on the month, reversing the bulk of the prior month's jump of 4.3%.

Food, drink and tobacco sales also fell, by 0.8%.

Dutch retail sales were especially weak, shrinking by 2.2% over the month, alongside a 1.3% drop in Germany.