Eurozone retail sales rise more than expected in May

Retail sales in the eurozone rose more than expected in May, according to data released by Eurostat on Wednesday.

Retail sales were up 0.4% on the month, beating expectations of a 0.3% increase. Sales of automotive fuel rose 1.7%, while sales of non-food products were up 0.6% and foods, drinks and tobacco fell by 0.4%.

On the year, retail sales were up 2.6% in the eurozone, ahead of expectations for a 2.3% gain. Sales of non-food products were up 3.5%, while food, drinks and tobacco sales rose 2.1% and automotive fuel sales were 0.9% higher.

In the EU-28 group of nations, retail sales were up 0.2% on the month and 2.6% on the year.

Capital Economics said the retail sales data suggest consumer spending growth edged up in the second quarter.

"May’s increase in eurozone retail sales suggests that household spending growth picked up in Q2. And the final euro-zone composite PMI for June implies that the wider economy also had a strong second quarter."