Eurozone retail sales ease as consumers rein in spending

Retail sales eased across the eurozone in April, official data published on Wednesday showed, as consumer sentiment remained muted.

The seasonally adjusted volume of retail trade fell 0.4% in April against the previous month, marginally below the consensus for a decline of 0.5%. Year-on-year, sales rose 1.5%, according to Eurostat, the European Union’s statistics office.

Both food, alcohol and tobacco and non-food sales declined 0.4% month-on-month, offsetting a marginal 0.1% improvement in petrol sales. The biggest decreases were seen in clothing, textile and footwear, which was down 1.5%, and mail order and internet, off 3.1%.

Among individual countries, Germany saw its retail sales fall 2% and Spain 0.7%. France reported a 0.4% increase.

Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, said the figures were “disappointing”.

He called it a “a slow start to the second quarter, but a setback was looming following the robust cumulative 1.5% in the first three months of the year.

“Big falls in clothing sales in physical stores and online shopping where the primary drivers. The crash in internet sales was particularly severe but we suspect that mean reversion will provide a boost next month.”

The Eurozone has seen consumer confidence weaken recently, as concerns about the strength of individual countries and the global economy, and the long-term stability of the bloc, weigh on sentiment.

Across all 28 EU member states, retail sales were off 0.3% in April compared to March but rose by 2.9% year-on-year.