Eurozone retail sales decline for third straight month

Retail sales in the Eurozone fell by 0.3% in September, declining for the third straight month, according to data released on Wednesday by Eurostat.

The decline was slightly worse than the 0.2% fall expected by analysts, though data for August was upwardly revised to -0.7% from the initial estimate of -1.2%.

During September, gains in food, drinks and tobacco (+1.4%) were offset by sharp falls in non-food products (-1.9%) and a decline in automotive fuel (-0.9%).

Non-food sales excluding fuel account for around 52% of total trade, according to Melanie Debono, senior Europe economist at Pantheon Macroeconomics.

Compared with September 2022, sales were 2.9% lower, worse than the revised 1.8% annual decline in August but better than the 3.2% drop expected.

"Looking ahead to Q4, the squeeze on real incomes should end, as inflation continues to slide and wage growth remains elevated. But survey measures of demand suggest consumers are in little mood to spend and consumer confidence remains subdued," Debono said.