- Euro area retail sales were weaker than expected in May as it was unchanged m/m. At the same time it was revised lower in April, where it declined 0.2% m/m.
- Today’s release implies the upward trend in retail sales have lost a bit of momentum, but considering the yearly growth rate it is still around the highest since 2007.
- The figures for retail sales in Q2 imply private consumption looks a bit weak in Q2. Nevertheless, retail sales still suggest that private consumption will increase in line with our forecast (there is even some upside risk).
- Looking ahead consumer confidence points to stronger retail sales and also suggests there is upside risk to our forecast for private consumption.
The upward trend in retail sales lost a bit of momentum However, retail sales suggest upside risk to private consumtion
Consumer confidence indicates stronger retail sales... ... and also suggest upside risk to private consumption
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