Eurozone Retail Sales Plunge Amid German Slump

The Eurozone retail sales data for July revealed a sharp slowdown, falling short of expectations. According to Eurostat figures, retail sales declined by 0.6% month-on-month in July, compared to a forecasted 0.3% increase.

This marked a significant deceleration from June's 1.4% year-over-year growth rate, dipping to 0.6% in July and its lowest reading since July 2024.

The contraction was primarily driven by sluggish sales across non-food products and fuel, with the largest economies within the Eurozone experiencing declines: Germany plummeted by 3.4%, Spain by 0.9%, and Italy by 0.3%.

The decline in retail sales weighed heavily on the Euro, causing it to depreciate by 0.10% against the US Dollar, with the EUR/USD pair closing at $1.1613.