Euro Zone Retail Sales Surge in September

FRANKFURT (Reuters) – Euro zone retail sales grew unexpectedly swiftly in September, following a significant upward revision of the previous month's data. This trend supports the notion that private consumption might finally be on the rise, according to figures from Eurostat released on Thursday.

Retail sales increased by 0.5% month-on-month based on adjusted figures, surpassing expectations of 0.4%. Notably, last month's growth rate was revised to 1.1%, up from 0.2%, Eurostat reported.

The robust growth figure, coupled with the substantial revision, raised the annualised increase to 2.9% in September, significantly higher than the 1.3% anticipated in a Reuters poll of economists.

Household consumption had been lackluster for over a year, despite rising real incomes, as families opted to save rather than spend. This trend has puzzled policymakers and hampered economic growth, intensifying concerns over a possible delay in the bloc’s long-awaited recovery.

However, the revisions indicate an upward trend in retail trade since June, with growth accelerating during the late summer months. Among the major countries in the bloc, Germany and Spain recorded above-average monthly growth rates, while France, buoyed by an Olympic boost the previous month, experienced a slight decline in September.

Sales of non-food products surged significantly, with an annualised growth rate of 5.3% in September, up from 2.4% the previous month.