- Retail sales -0.4% vs -0.3% m/m expected
- Prior -0.1%; revised to +0.8%
The drag in April needs to be put into a bit of context as it follows from a sharp revision higher to the March number. And that came after a positive revision to non-food retail sales in ending Q1 (from +0.6% to +1.7%). In April, non-food retail sales reflected a drop of 0.9% and was key in dragging down the overall figure.
Besides that, automotive fuel sales also dropped back in April (-2.7%) after also seeing a positive revision to the March figure (from -1.6% to +0.9%).
The jump in March is likely tied to consumers fronting their fuel and petrol purchases amid fears of higher oil and gas prices due to the Middle East conflict. The trend here was very much observed across similar data in the country level, with the Germany here.
And much like that report, the overall euro area data here also sees a pick up in food store sales in April (+0.9%). Households stocking up before seeing further price rises and shortages are definitely key considerations in propping up the figure. So, we’ll get a better sense of things when we get to the May and June numbers especially.
