Eurozone August Retail Sales Rebound Slightly on Non‑Food Gains, but Overall Growth Remains Subdued

Eurozone retail sales edged up 0.1% month‑on‑month in August after a 0.6% decline in July, falling short of the 0.2% increase expected by analysts. On a yearly basis, retail trade volume rose 0.8%, up from a revised 0.4% in July, indicating a modest improvement in household demand.

The underlying composition was more encouraging. Non‑food sales, excluding automotive fuel, climbed 0.5% m/m, reversing part of July’s 1.2% drop, while food, drinks and tobacco rose 0.1% m/m. Automotive fuel volumes fell sharply, down 1.9% m/m, and were 3.7% lower year‑on‑year.

Across the major economies, performance was mixed. Germany’s retail sales rebounded 1.3% m/m after a steep 3.2% fall in July, while Spain and Italy saw modest rises of 0.3% and 0.1% respectively. France, however, recorded a 1.1% decline, reversing the prior month’s gain. The data suggest a tentative recovery in discretionary spending outside fuel, but the broader consumption picture remains uneven and weak.

Data Summary

Indicator
Aug
Jul
Retail sales m/m
0.1%
-0.6%
Retail sales y/y
0.8%
0.4%
Food, drinks, tobacco m/m
0.1%
-0.1%
Non-food ex-fuel m/m
0.5%
-1.2%
Automotive fuel m/m
-1.9%
-0.2%

Key Takeaways

• Retail sales barely recovered: volumes rose 0.1% m/m after falling 0.6% in July.
• The rebound missed expectations: consensus was for a 0.2% increase.
• Annual growth improved: sales rose 0.8% y/y, up from a revised 0.4% in July.
• Non-food spending was the strongest component: sales excluding automotive fuel rose 0.5% m/m after a 1.2% decline in July.
• Fuel was the main drag: automotive fuel sales fell 1.9% m/m and were down 3.7% y/y.
• Food spending was broadly stable: food, drinks and tobacco sales rose 0.1% m/m.
• Germany rebounded strongly: retail sales rose 1.3% m/m after a 3.2% drop in July.
• France weakened: retail sales fell 1.1% m/m after rising 0.8% in July.
• The broader picture remains soft and uneven: discretionary spending recovered somewhat, but the overall increase was too small to signal a strong household-demand rebound.

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