FX.co ★ Eurozone Retail Sales See Sharpest Drop Since 2023

In May 2025, retail sales within the Eurozone experienced a significant drop of 0.7% compared to the previous month, marking the sharpest decline since August 2023. This downturn followed an upward revision of a 0.3% increase in April and met market expectations. The decrease was primarily due to a reduced demand for non-food items, dropping by 0.6% compared to a minor decline of 0.1% in April. Fuel sales saw a notable decrease of 1.3%, a significant change from the 1.3% increase previously recorded. Additionally, sales in food, drinks, and tobacco fell by 0.7%, contrasting with April's 0.8% rise. When examining the Eurozone’s key economies, Germany experienced a notable reduction in retail volumes, declining by 1.7%. The Netherlands, Italy, and France also saw decreases of 0.6%, 0.4%, and 0.2%, respectively. In contrast, Spain demonstrated resilience with a slight increase of 0.2%. Looking at year-over-year figures, retail trade growth decelerated to 1.8% in May from 2.7% in April.