Eurozone retail sales rose in July, but the downward trend remains. Rising food and fuel spending masked a decline in sales for all other items.

Of the last 12 months, the peak of sales was in November last year, and sales in July were well below this level. Food and fuel rose slightly in July, but all other items fell by -0.4%.

The outlook remains quite bleak for the coming months, we know that real incomes are contracting due to high inflation and consumption is expected to tighten in the coming quarters against this backdrop.

In July 2022, the seasonally adjusted volume of retail trade increased by 0.3% in the both the euro area and in the EU, compared with June 2022, according to estimates from Eurostat. In June 2022, the retail trade volume decreased by 1.0% in the both the euro area and in the EU.

Among Member States for which data are available, the highest monthly increases in the total retail trade volume were registered in Germany (+1.9%), the Netherlands (+1.7%), Luxembourg and Poland (both +1.5%). The largest decreases were observed in Austria (-1.8%), Finland (-1.7%) and Spain (-1.0%).