Retailers in the eurozone saw sales edge higher in August, adding to signs of a modestly resilient economy despite U.S. tariffs and political uncertainty.
Retail volumes increased 0.1% across the 20-nation currency area in August from a month earlier, compared with a 0.4% drop in July, statistics agency Eurostat said Monday. Economists polled by The Wall Street Journal had also expected a 0.1% increase.
Domestic consumer demand has been expected to prop up the eurozone economy as it takes the hit from U.S. tariffs on its exports. Retail sales were up 1.0% compared with August 2024.
The European Central Bank lowered borrowing costs to 2% in June this year, from 4% in the spring of 2024, but has kept the key interest rate at that level ever since and looks unlikely to cut again this year.
On the month, sales of food, drinks and tobacco rose 0.3%, increased by 0.4% for automotive fuel but fell marginally for non-food products.
In France, where Francois Bayrou's government was on the verge of collapse in August, sales rose 0.5%, after a 0.9% slump in July. The country's latest prime minister, Sebastien Lecornu, resigned Monday.
