Eurozone February Retail Sales Fall More Than Forecast

In February 2024, retail sales in the Euro Area experienced a decline, with the seasonally adjusted retail trade volume decreasing by 0.5% month-on-month. This fall surpassed analysts' expectations, which had predicted a smaller contraction of 0.3%. This drop in sales was seen across various sectors including food, drinks, tobacco, and non-food products, excluding automotive fuel. Specialized stores selling automotive fuel also reported a 1.4% decline.

The Eurostat data further highlighted that on an annual basis, retail sales in February decreased by 0.7% in the Eurozone. When compared with the previous year, the decrease marked a continued downward trend from January 2024's revised annual decline of 0.9%. The decrease in retail trade volume was not uniform across the region, with the largest monthly decreases seen in countries such as Germany, Belgium, and Cyprus. On the other hand, countries like Poland, Croatia, and Estonia bucked the trend with significant increases in retail sales.

Despite the mixed performance across different Eurozone countries, the overall decline in retail sales did not appear to have a significant impact on the Euro currency. The EUR/USD exchange rate remained relatively stable at around 1.0834 following the release of the retail sales data.