Eurozone Retail Sales Decline Unexpectedly in June, Missing Forecasts

• Eurozone retail sales fell 0.3% MoM in June, missing forecasts.
• Annual growth slowed to 0.7%, below expectations.
• Data points to soft household consumption in Q2.

Eurozone retail sales unexpectedly declined by 0.3% month-on-month in June, significantly missing the anticipated 0.1% increase. This contraction followed an upward revision of May’s sales to 0.4%. On an annual basis, retail trade growth slowed to 0.7%, below the 1.0% forecast and a deceleration from the revised 1.9% in the prior period. The decline was broad-based, with food, drinks, and tobacco sales falling by 0.5%, and non-food products dropping by 0.4% month-on-month. These figures suggest that household consumption concluded the second quarter on a soft note, not acting as a primary driver for economic growth. The Euro (EUR) showed a limited immediate reaction, with EUR/USD trading slightly lower.