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Eurozone Retail Sales Drop Unexpectedly in December
5 Feb
Summary
- Retail sales volumes declined by 0.5% in December, exceeding expectations.
- Nonfood sales were the primary driver of the December decrease.
- Despite the dip, annual retail sales volumes saw a 1.3% increase.
In December 2025, Eurozone retail sales volumes experienced a more significant decrease than economists had predicted, dropping by 0.5% compared to the previous month. This downturn was largely influenced by a decline in nonfood sales, impacting the crucial holiday shopping period. However, food and drink sales saw a slight increase, and retail sales across Germany edged higher. Despite this setback, the overall annual retail sales volumes for 2025 showed a 1.3% rise. Consumer confidence in the Eurozone improved in January 2026, with expectations that domestic demand will drive economic growth this year. Nevertheless, persistent geopolitical tensions and other factors mean confidence levels remain below their long-term average.
