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Retail gross sales within the eurozone fell at their steepest month-to-month fee in practically two years in Might, as rising uncertainty over US commerce tariffs weighed on shopper sentiment and curbed spending.
In accordance with first estimates launched by Eurostat on Monday, the seasonally adjusted quantity of retail commerce decreased by 0.7% within the eurozone and by 0.8% throughout the EU in Might, in comparison with April.
The decline aligns with economists’ forecasts however marks the sharpest drop since August 2023.
The setback follows a modest rebound in April, when gross sales rose by 0.3% within the eurozone and by 0.8% within the wider European Union.
On an annual foundation, eurozone retail gross sales progress slowed from 2.7% in April to simply 1.8% in Might — the weakest growth since July 2024.
Sector breakdown and nationwide traits
Throughout the eurozone, all main retail sectors skilled contraction. Gross sales of meals, drinks and tobacco fell by 0.7%, whereas non-food merchandise — excluding automotive gasoline — declined by 0.6%.
Automotive gasoline gross sales dropped essentially the most, falling by 1.3% in specialised shops.
Within the broader EU, the declines have been equally unfold, with meals and beverage gross sales down 0.8%, non-food merchandise dropping by 0.7%, and automotive gasoline dipping 1.2%.
Amongst EU member states, essentially the most extreme month-to-month contractions have been seen in Sweden (-4.6%), Belgium (-2.5%) and Estonia (-2.2%). In the meantime, Portugal (+2.1%), Bulgaria (+2.0%) and Cyprus (+1.0%) posted the strongest will increase.
Markets keep cautious as buyers watch US commerce strikes
European fairness markets remained largely flat on Monday.
The blue-chip Euro STOXX 50 hovered close to 5,300 factors, whereas the broader STOXX 600 was unchanged at 541, as buyers awaited readability on the course of US commerce coverage.
The euro edged down 0.3% to $1.1730, whereas yields on 10-year German Bunds held regular at round 2.57%.
President Donald Trump is predicted to concern a brand new wave of tariff warning letters in a while Monday, focusing on international locations with commerce surpluses with the US.
Whereas the record of recipients stays undisclosed, Commerce Secretary Howard Lutnick confirmed that the “Liberation Day” tariff package deal initially scheduled for 9 July would now take impact on 1 August.
Trump’s administration had beforehand imposed a 20% import tax on EU-manufactured items in April, however shortly decreased the speed to 10% as monetary markets plummeted.
Nonetheless, a separate deadline to achieve an settlement with the European Union earlier than tariffs rise as excessive as 50% has now been set for Wednesday.
To date, solely China, the UK and Vietnam have managed to safe non permanent exemptions by offers with Washington.
Trump has warned that any nation aligning with the ‘anti-American insurance policies’ of the BRICS bloc will face a further 10% tariff — with no exceptions.