2023.02.0610:17:00UTC+00Eurozone Retail Sales Fall Most Since April 2021

Eurozone retail sales declined at the fastest pace in twenty months after rebounding in the previous month, as rising price pressures weighed on household spending, data published by Eurostat showed on Monday.

Retail sales fell 2.7 percent month-on-month in December, in contrast to the 1.2 percent increase in November, which was revised up from 1.8 percent.

Economists had expected a 2.5 percent drop for the month.

Further, this was the worst decline since April 2021, when sales had fallen 3.2 percent.

Sales of food, drinks, and tobacco dropped the most, by 2.9 percent over the month, and those of non-food products slid 2.6 percent.

At the same time, sales of automotive fuel in specialized stores grew 2.3 percent. Retail sales through mail orders and the internet were 2.3 percent lower compared to last month.

On a yearly basis, retail sales declined 2.8 percent after falling 2.5 percent in November. Sales were expected to decrease by 2.7 percent.

The retail turnover in the EU27 posted a monthly drop of 2.7 percent in December, reversing the prior month's 1.2 percent gain. Annually, sales were down 2.5 percent versus a 2.1 percent contraction in November.

Among member states of the EU, the largest monthly decrease in retail trade volume was registered in the Netherlands, Germany, and Luxembourg. Meanwhile, the highest increases were observed in Slovakia, Austria, and Romania.