Eurozone Retail Sales Rose Less Than Expected in January
The eurozone's retail sales rose less than anticipated in January as households continue to struggle with rising inflation and unemployment. Wednesday's statement by the European Union's statistical agency stated that retail sales in 17 euro-using countries increased 0.3% in January compared to D
The eurozone's retail sales rose less than anticipated in January due to rising interest rates and high inflation.
According to Eurostat data released Monday, retail sales volumes increased 0.3% in January. This partially offsets a revised drop of 1.7% in December.
The reading fell below the 0.5% increase forecast by economists in a poll by The Wall Street Journal.
On an annual basis, the volume of retail sales was down 2.3% in January, Eurostat said.
The rise in sales was driven by food, drinks and tobacco, which together registered a 1.8% on-month increase in January, but Eurostat's measure for automotive fuels fell 1.5%.
However, the economy's weak momentum is likely to cause a disappointing first quarter in 2023 in terms of both retail sales and overall consumer spending, according to economists at Oxford Economics in a note before the data release.