Eurozone retail sales growth decelerated in September, primarily due to a decrease in food sales and a notable slowdown in auto fuel turnover, according to data released by Eurostat on Thursday.
Retail sales increased by 0.5% on a monthly basis in September, a slowdown from the 1.1% rise in August. This growth rate slightly surpassed economists' predictions of a 0.4% increase.
Sales of food, drinks, and tobacco declined by 0.4%, a reversal from the 1.1% rise observed in the previous month. Conversely, non-food product sales grew by 1.1%, following a 1.2% increase in August.
Sales of automotive fuel in specialized stores saw a modest growth of 0.2%, considerably lower than the 1.3% increase recorded in the prior month. On a year-on-year basis, retail sales growth rose to 2.9%, up from 2.4% in August, with expectations set for a 1.3% growth.
"Looking forward, we are skeptical that retail sales will maintain such strong momentum, as real income growth is likely to decelerate and consumer confidence remains quite low," stated Capital Economics' economist Elias Hilmer.
Within the EU, retail sales experienced a 0.3% growth from August and a 2.8% increase compared to the previous year.
