Eurozone retail sales rise more than expected in July

Retail sales in the 19 countries that share the euro rose more than expected in July, according to the latest figures from Eurostat.

Retail sales were up 1.1% on the month following a 0.1% drop in June. On the year, retail sales were up 2.9%.

Sales of automotive fuel were up 1.8% in the eurozone, while sales of food, drinks and tobacco increased 1.1% and non-food products sales were up 0.4%.

On the year, sales of non-food products were 3.2% firmer, while automotive fuel sales were 2.2% higher and food, drinks and tobacco sales were up 1.8%.

In the EU-28 group of nations, sales were 1% higher in July compared to a 0.2% fall in June. On the year, sales were up 3.5%.

Dennis de Jong, managing director at UFX.com, said: “The spike in EU retail sales figures mirrors the surprisingly positive data from the UK last week, indicating consumers have been comfortable in taking a devil-may-care attitude in the face of swirling uncertainty.

“The rise in consumer spending on the continent will have stunned observers, many of whom took the view that post-Brexit uncertainty, coupled with the French and German economies showing signs of slowing down, would see high streets suffer. However, ECB president Mario Draghi will know that while a temporary rise in consumer spending is welcome, strong GDP and inflation figures are more of a pressing concern for many.”