Eurozone Retail Sales Fall the Most in 2 Years

Retail sales in the Eurozone fell by 0.5% from the previous month in July of 2025, erasing the upwardly revised, 15-month high increase of 0.6% in the previous period, and firmly above expectations of a softer 0.2% contraction. It was the sharpest drop in retail volume in nearly two years, pressured by a 1.1% slump in food, drinks, and tobacco (vs 0.7% in June) and a 1.7% plunge in sales of automotive fuel in specialized stores (vs 0.8%). Still, retail of non-food products rose by 02%, extending the 0.6% increase in the prior month. Among the Eurozone's largest economies, retail trade slipped by 1.5% in Germany and fell by 0.4% in Spain. In turn, retail sales were unchanged for a third month in France.