Eurozone retail sales contract 0.3 per cent as European demand softens

Retail trade volume in Cyprus contracted by 1 per cent in June 2026 compared with the previous month, according to a report released on Thursday by Eurostat.

The monthly drop in Cyprus followed a sharp expansion of 3.7 per cent recorded in May 2026.

Prior to that, the island’s monthly retail trade volume had fallen by 0.9 per cent in April 2026, after expanding by 0.6 per cent in March 2026.

Despite the monthly pullback, Cyprus recorded a solid year-on-year increase of 5 per cent in retail trade volume in June 2026 when compared with June 2025.

The annual performance in June followed a robust year-on-year surge of 8.4 per cent in May 2026, a 2.7 per cent gain in April 2026, and a 6.1 per cent growth rate in March 2026.

Across the broader euro area, the seasonally adjusted retail trade volume decreased by 0.3 per cent in June 2026 compared with May 2026.

Throughout the entire European Union, retail sales volume edged down by 0.1 per cent over the same monthly period.

The downturn across Europe marked a clear reversal from May 2026, when retail trade volume grew by 0.4 per cent in the euro area and by 0.6 per cent in the EU.

On an annual basis, the calendar adjusted retail sales index increased by 0.7 per cent in the euro area and by 1.2 per cent across the EU in June 2026 compared with June 2025.

Examining specific sectors within the euro area, the volume of retail trade for food, drinks and tobacco decreased by 0.5 per cent month-on-month.

Sales of non-food products excluding automotive fuel fell by 0.4 per cent across the single currency zone compared with May 2026.

Conversely, retail sales of automotive fuel in specialised stores rose by 1.5 per cent in the euro area on a monthly basis.

For the EU as a whole, retail trade volume for food, drinks and tobacco fell by 0.4 per cent in June 2026.

Non-food products excluding automotive fuel contracted by 0.3 per cent across the EU compared with the previous month.

Retail sales of automotive fuel in specialised stores advanced by 1.7 per cent across the EU on a monthly basis.

Among member states for which data were available, the largest monthly decreases in total retail trade volume were recorded in Finland at minus 1.5 per cent, Romania at minus 1.2 per cent, and Germany at minus 1.1 per cent.

The highest monthly increases were observed in Luxembourg at plus 2.5 per cent, Portugal at plus 1.7 per cent, and both Croatia and Sweden at plus 1.5 per cent.

Looking at annual comparisons for the euro area, retail sales for food, drinks and tobacco grew by 0.9 per cent in June 2026 compared with June 2025.

Non-food products excluding automotive fuel increased by 1.7 per cent year-on-year across the euro bloc.

However, retail sales of automotive fuel in specialised stores dropped sharply by 6.6 per cent in the euro area over the twelve-month period.

Across the wider EU, annual retail volume for food, drinks and tobacco rose by 0.7 per cent.

Non-food products excluding automotive fuel expanded by 2.3 per cent year-on-year across the EU.

Automotive fuel sales in specialised stores fell by 4.1 per cent across the EU compared with June 2025.

Among all reporting member states, the highest annual increases in total retail trade volume were registered in Luxembourg at plus 8.3 per cent, Sweden at plus 7.2 per cent, and Bulgaria at plus 7.1 per cent.

On the other hand, annual decreases were observed in Romania at minus 6.6 per cent, Austria at minus 0.3 per cent, and both Belgium and Germany at minus 0.1 per cent.