Retail sales better than expected across eurozone

'The big question is whether eurozone consumers are eager to consume when the economy reopens'

Mon, 12 Apr, 2021 - 19:30

Eurozone retail sales were stronger than expected in February, new data show, as some countries eased their Covid restrictions before tightening them again in March.

The EU’s statistics office said retail sales in the 19 countries sharing the euro rose 3% month-on-month in February for a 2.9% year-on-year fall.

Economists had expected a 1.5% monthly rise and a 5.4% year-on-year decline.

The CSO recently said that Irish retail sales grew 14% on a monthly basis in February, but fell by 3.2% year on year. In value terms, there was a near 13% monthly rise but a 6% yearly fall.

"The big question is whether eurozone consumers are eager to consume when the economy reopens," said Bert Colijn, eurozone economist at ING Bank.

"With involuntary savings built up substantially over the course of last year, there is significant potential for a rebound."

Mr Colijn said that Italy's eased restrictions in February helped the 8.4% increase in sales there. The Netherlands also allowed in-store pickups of online orders from mid-February, which resulted in a 5.4% increase for the month.

When car sales were stripped out of the recent CSO figures, Ireland's February retail sales rose by only 2.5% on a monthly basis.