2018.07.0308:37:00UTC+00Eurozone Retail Sales Remain Unchanged In May

Eurozone retail sales remained unchanged in May as rising consumer prices curb consumer spending, official data revealed Tuesday.

The increase in food sales was offset by a decline in non-food products turnover, Eurostat reported. Overall sales were expected to gain 0.1 percent, reversing a 0.1 percent fall logged in April.

Food, drinks, and tobacco sales advanced 1.1 percent, while non-food product sales decreased 1 percent. Automotive fuel sales also remained flat.

On a yearly basis, retail sales growth eased to 1.4 percent in May from 1.6 percent in the previous month. Economists had forecast sales to climb again by 1.6 percent.

Retail sales data were a little weaker-than-expected, but still imply that the consumer sector fared better in the second quarter than in the first quarter, Jack Allen, an economist at Capital Economics, said.

And looking ahead, the economist said that household spending will remain a key driver of economic growth in the region.

According to the European Central Bank, the currency bloc will grow 2.1 percent in 2018 and 1.9 percent in 2019 and 1.7 percent in 2020. Real GDP growth was supported primarily by growth in private consumption and investment.

Retail sales in EU28 grew 0.3 percent from the previous month, taking the annual gain to 2.3 percent in May.

Among member states, the highest increases in the total retail trade volume were registered in Portugal, Latvia and Slovenia. Meanwhile, decreases were logged in Germany, Austria, Spain and Poland.