A new study has shown that retail sales in countries using the euro have fallen in May, down 0.4 per cent on a month-on-month basis and 3.3 per cent year-on-year.
The figures, collected by Eurostat, have highlighted the fact that consumers are continuing to cut back on spending despite April's 0.1 per cent increase in sales – meaning that there is no sign of an imminent consumer-led recovery.
'There was further confirmation today, if any were needed, that domestic demand is not set to ride to the rescue of the euro area economy any time soon,' said Colin Ellis, an economist at Daiwa Securities.
Non-food sales dropped by 0.6 per cent during May, the study found, representing a 3.4 per cent drop compared with the same period a year earlier.
Prices across the 16-nation Eurozone have fallen by 0.1 per cent in the past 12 months, Eurostat said.
Meanwhile, European Union member states that don't use the euro such as the UK and Sweden saw sales fall by 0.5 per cent.
