Euro Area Retail Sales Rise in August as Fuel Purchases Fall
In August, euro area retail turnover rose 0.1% on the month, reversing July's 0.6% decline, according to Eurostat data cited by Sina Finance. Economists had expected a 0.3% gain.
Sales of food, beverages and other non-fuel goods edged higher, with Germany showing a notable improvement in August.
Fuel sales fell 1.9% from July as oil prices rose during the month.
Capital Economics' Harry Chambers noted that fuel purchases may fall again if oil prices rise further in September, pointing to Brent crude briefly rising above $105 a barrel.
On a year-over-year basis, August sales were 0.8% higher than a year earlier. Chambers cautioned that consumer spending is likely to stay resilient but cool from the brisk pace recorded in Q2.
Pantheon Macroeconomics' Claus Vistesen argued the data imply weaker retail consumption in the current quarter, with July and August averaging about 0.3% below Q2. He also suggested that the retail figures underestimate overall consumer strength, citing strong car sales and resilient services spending.


