Euro area retail sales increase the most since 2017

Retail sales in the euro area posted the largest increase since the end of 2017 in June, showing how robust the bloc's consumers remain despite the difficulties of its industrial sector.

Retail trade volume increased by 1.1% in June compared to May, according to Eurostat, the Eurozone statistical agency. The rise was well above the 0.2% expected by economists in a Reuters poll and followed a decline of 0.6% the previous month.

There were many gains in June, with food, beverages and tobacco, non-food items and automotive fuels all posting gains of over 1%.

Overall, retail sales increased 2.6% in June compared with the same month in 2018.

This robust increase shows how tight the labor market – the unemployment rate is at its lowest level since 2008 – has been a boon for consumers in the region. It contrasts with the lingering gloom in the manufacturing industry in which companies have been punished by the global commercial skirmish and slowing economic growth.