- Prior -0.1%; revised to 0.0%
Euro area retail sales dropped slightly in February but is still seen up 1.7% relative to the same month a year ago. The details show a 0.5% drop in sales for food, drinks, tobacco while retail sales for non-food products were stable on the month. Meanwhile, sales for automotive fuel in specialised stores saw a 0.7% increase in February.
The detailed breakdown and monthly comparisons:
With the US-Iran conflict set to have an impact on price pressures in March, expect that to also drag down consumption activity. That alongside the relative economic uncertainty will make for more cautious behaviour among households in terms of their spending decisions.
So, there will be that to look forward to in the month(s) ahead. And if gas prices continue to keep higher in the weeks ahead, expect that to take a bigger toll on consumer behaviour. That as well as needing to consider ECB interest rate hikes down the road too.
