Retail sales in the eurozone fell by 0.8% year on year. Month on month, sales also fell by 1.1%. The average annual level of retail trade in 2023 was down by 1.8% compared to 2022.
The retail trade downturn is occurring despite falling inflation, suggesting that consumers are still wary about spending. Households remain cautious in their spending as uncertainty about the future continues.
GDP data show that the eurozone has avoided recession but remains in a state of stagnation. The expected rebound in retail sales has not yet occurred, and without a strong consumer, growth will be difficult. Perhaps the next year will bring a resurgence in retail sales – inflation is falling, and the ECB is slowly preparing to begin rate cuts.
Bartosz Wałecki, Analyst Michael / Ström Dom Maklerski
