Eurozone retail sales fall more than expected
Eurozone retail sales fell more than expected in April, partly due to stricter Covid-related lockdown measures in certain countries, according to figures released by Eurostat on Friday.
Retail sales declined by 3.1% on the month following a 3.3% increase the month before and versus expectations for a 1.5% drop.
Non-food product sales fell by 5.1%, while food, drinks and tobacco sales were 2% lower on the month. Automotive fuel sales rose 0.4%.
On the year, retail sales pushed up 23.9% in April following a revised 13.1% jump in March. Still, this was below consensus expectations for a 25% increase.
Pantheon Macroeconomics said: "This isn’t pretty, but it is better than we expected, not least due to the upward revision of the March number. The headline was stung by weakness in Germany and France - sales here fell by 5.5% and 6.0% month-to-month respectively - though demand also dipped in Spain, by 0.9%.
"New virus restrictions at the start of Q2 were the main driver of the overall decline, after lockdowns in non-essential retail had been gradually eased, in some countries, in March. Restrictions are now easing again, however, and this time, vaccination should make sure that a new lockdown won’t cut short the rebound.
"This process began in May, in most of the major economies. This, in turn, suggests that we shouldn’t write off Q2 just yet. The carry-over–the increase in Q2 if sales remain unchanged at their April value through May and June - is +0.3%, and we think the final number for the quarter will be much better as demand rebounds in the latter part of Q2. Sales in Germany and France, in particular, should increase."