Eurozone Retail Sales Growth Resumes in May
European retail sales picked up steam in May, rising 0.4% on the month after stagnating in April.
The monthly rise, as reported by the European Union's statistics agency, was slightly higher than consensus forecasts for a 0.3% increase, though the annual 1.6% growth rate fell below forecasts for a 1.7% uplift. Retail sales had risen 1.4% in April on the year.
Non-food sales led the monthly growth in May, rising 0.7%, while sales of food, drink and tobacco stagnated.
German retail sales rose 0.9% on the month but sales in France stagnated.
Outside the eurozone, U.K. sales by volume rose 1.00% on the month. The monthly growth rate in sales - as measured by volume - across the 28-nation European Union was also 0.4%, while sales picked up at an annual rate of 2.8%.
The data comes after Markit revised its eurozone purchasing managers' index for the services sector and the composite gauge upwards in June but both indices fell from May.
Markit extrapolated a second-quarter eurozone GDP growth rate from the data of 0.3%, half the pace of first-quarter growth. Both Germany and France are relying on consumer demand to spur economic growth.
Markit also said U.K. second-quarter GDP probably expanded by 0.2% in the April to June quarter, down from 0.4%, as its services PMI for the U.K. fell more than expected to 52.3 in June from 53.5 in May. Readings over 50 signal economic expansion.
Eurozone stock indices extended losses in the course of the morning.
The Dax was recently down 1.54% at 9,571.64
Outside the eurozone, the FTSE 100 was down 0.34% at 9,569.15.