Euro area retail sales fell 0.6% MoM in July; overall retail turnover slipped 0.4% MoM after a 0.2% rise in June. On a YoY basis retail volumes were up 0.6% in the euro area and 1.0% in the EU. The monthly decline was driven by weak non‑food sales, with Germany notably soft; motor fuel sales dropped 0.8% while food, beverages and tobacco rose 0.4%, providing partial support. Data indicate consumption is cooling but remains slightly above year‑ago levels and are unlikely to change the ECB outlook

2026-09-04

Euro area retail sales fell 0.6% MoM in July; overall retail turnover slipped 0.4% MoM after a 0.2% rise in June. On a YoY basis retail volumes were up 0.6% in the euro area and 1.0% in the EU. The monthly decline was driven by weak non‑food sales, with Germany notably soft; motor fuel sales dropped 0.8% while food, beverages and tobacco rose 0.4%, providing partial support. Data indicate consumption is cooling but remains slightly above year‑ago levels and are unlikely to change the ECB outlook; markets still price a 25bp hike to 2.50% at the next meeting.