Eurozone retail sales up 2.4% in June as consumers increase spending

Eurozone retail sales rose at the fastest rate in seven years in June — and twice as fast as expected — thanks to strong sales of both food and non-food products, according to data published yesterday.

The volume of retail sales in the 18 countries sharing the euro surged by 2.4% compared with the same period last year, posting its strongest growth since March 2007, after a downwardly revised 0.6% rise in May, data from the EU’s statistics office Eurostat showed. Retail sales, a proxy for household demand, rose in line with expectations by 0.4% on the month in June after an upwardly revised 0.3% rise in May, the data showed.

The annual rise was driven by a 3% increase in sales of non-food products such as electronics, computers, books or textiles, followed by a 2% increase in the volume of sales of food, drinks and tobacco.