Eurozone retail sales rise more than expected in July

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.”