Eurozone retail sales grow a little less than expected in June

Eurozone retail sales rose a little less than expected in June as stores reopened, according to figures released on Wednesday by Eurostat.

Retail sales increased 1.5% on the month following a 4.1% jump in May, and versus expectations for growth of 1.7%.

The volume of retail trade rose 3.8% for automotive fuels, while non-food products saw a 3.4% increase, and food, drink and tobacco sales fell 1.5%. Online sales declined by 2.9%.

On the year, retail sales were up 5%.

Melanie Debono, senior Europe economist at Pantheon Macroeconomics, said: "The eurozone retail sector had a great June, as restrictions were eased further across the region. The rise in sales followed a very-strong increase in May and left sales 4.8% above their pre-Covid level."

She said the monthly decline in food sales was more than offset by the pick-up in non-food.

"Note also that non-food sales would have picked up further were it not for a fall in online sales, probably as consumers have now turned to the high street, partly reversing the online shopping spree during lockdown," she said. "The country breakdown confirmed that sales jumped in Germany, and also rose in the other three major eurozone economies."