(RTTNews) - Eurozone retail sales grew only marginally in July, suggesting subdued support from household consumption to economic growth.
Retail sales posted a monthly growth of 0.1 percent in July, reversing a 0.4 percent fall in June, data published by Eurostat showed on Thursday. The decline reflects a 1.0 percent drop in automotive fuel sales. Food, drinks and tobacco sales rebounded 0.4 percent and non-food product sales edged up 0.1 percent.
On a yearly basis, retail sales were down unexpectedly by 0.1 percent but slower than June's 0.4 percent decrease. Sales were forecast to grow 0.1 percent.
The economy isn't showing signs of further acceleration after a surprisingly strong first half year, ING economist Bert Colijn said.
The moderate 0.1 percent rise in retail sales suggests a significant boost in third quarter economic activity is unlikely, the economist added.
"Looking ahead, we suspect that overall household consumption will increase in the coming quarters on the back of rising real incomes and lower interest rates," said Capital Economics' economist Elias Hilmer.
The economist said despite surveys pointing to an improvement in consumer confidence, households are still saving an unusually high proportion of their incomes, perhaps reflecting pessimism about economic prospects for the region.
Official data showed that the EU27 retail trade volume grew 0.2 percent on month taking the annual growth to 0.4 percent in July.
