Eurozone retail sales fall in July as consumer spending softens

Full report hereRetail sales in the Eurozone declined in July, pointing to softer consumer demand. The volume of retail trade fell by 0.6% m/m in July, reversing the 0.2% increase recorded in June. Across the broader European Union, retail sales declined by 0.4% after also rising 0.2% in the previous month. On an annual basis, however, retail activity remained slightly positive. Compared with July 2025, Eurozone retail sales increased 0.6%, while sales across the EU rose 1.0%.The monthly decline was driven primarily by weaker demand for non-food products, where sales dropped 1.4% in the Eurozone. Sales of automotive fuel also fell 0.8%, while spending on food, drinks and tobacco provided some support with a 0.4% increase. Germany was the main drag on the regional figures, recording a sharp 3.4% monthly decline in retail sales. Spain followed with a 0.9% decrease, while Italy and Poland both posted declines of 0.3%. In contrast, Latvia, Cyprus and Luxembourg recorded the strongest monthly gains.The data doesn't change anything for the ECB which is expected to hike by 25 bps at the upcoming meeting, bringing the policy rate to 2.50%. The market is pricing in another rate hike before the end of the year, but the central bank might signal reluctance for further tightening without a clear increase in core inflation.  This article was written by Giuseppe Dellamotta at investinglive.com.