Eurozone retail sales rise a little less than expected in April

Sales were up 0.1% on the month, missing expectations for a 0.2% increase. Sales of food, drinks and tobacco were up 0.6%, while sales of non-food products were down 0.4% and sales of automotive fuel fell 0.8%.

The March figure, meanwhile, was revised down to show a 0.2% increase from a previously estimated 0.3% rise.

On the year, retail sales were up 2.5%, beating expectations for a 2.3%jump. Sales of non-food products were up 3.4%, while food, drinks and tobacco sales were 2.1% higher and automotive fuel sales fell 1.6%.

In the EU-28 group of nations, retail sales grew 0.5% on the month and 3% on the year.

Pantheon Macroeconomics said: "We are optimistic for retail sales in Q2, despite the soft April data. Survey data suggest that year-over-year growth should come in between 2.5% and 3.0%, implying a 0.5% quarter-on-quarter rise, up from a 0.3% rise in Q1. Slowing real wage growth is a downside risk, though, but even with this caveat we think sales will support consumers’ spending in the short run."