Euro zone retail sales fall in May

Retail sales in the 17-member euro zone fell in May as consumers cut back on spending in the face of higher inflation and rising unemployment.

According to the European Union’s statistics, Eurostat, sales in the euro zone fell 1.1% in May on a monthly basis – the biggest fall since April 2010 – with the non-food sector, such as electrical goods and clothing, noticing weak demand.

Analysts had expected a decline of 1%.

On an annual basis, meanwhile, sales were 1.9% lower – way below the 0.5% yearly fall which was expected.

In Germany, which is the euro zone’s largest economy, sales fell almost 3%, while France showed a fall of 0.7%.