Eurozone's retail sales declined further in March as domestic demand continued to be dragged by the ongoing economic crisis and the austerity policies pursued by many member-countries, raising concerns that the currency bloc would remain in recession in the first half.
Retail sales dropped 0.1 percent sequentially, a tad slower than the 0.2 percent fall seen in February, the statistical office Eurostat said Monday. The latest fall was in line with economists' forecast.
"A further dip in Eurozone retail sales in March, following on from the purchasing managers reporting still appreciable contraction in services activity in April, points to significant ongoing economic struggles for the region," IHS Global Insight Chief UK & European Economist Howard Archer said.
"Indeed, the latest data and survey evidence fuel concern that the Eurozone is headed for further GDP contraction in the second quarter after highly likely suffering a sixth successive quarter of contraction in the first quarter of 2013."
The overall decline was driven mainly by a 0.5 percent fall in sales of non-food products. Meanwhile, sales of food, drinks and tobacco rose by 0.8 percent from the previous month.
In the European Union, sales dropped by 0.2 percent sequentially in April, after recoding a 0.1 percent growth in the previous month.
Among member states, with a 3 percent monthly decline, Portugal reported the biggest fall in sales, followed by Slovenia and Ireland, where retail sales dropped by 2.6 percent and 1.9 percent, respectively.
Compared to March 2012, overall retail sales in the 17-nation economy decreased 2.4 percent as expected, after falling 1.7 percent in February. In the EU, sales fell by 1.6 percent year-on-year.
Elsewhere today, the latest purchasing managers' survey compiled by Markit Economics showed that Eurozone's private sector contracted further in April, but to a lesser extent than initially estimated, with both the manufacturing sector and the service sector recording declines in activity.
The survey revealed that private sector firms lowered their workforce for the sixteenth month running. Payroll numbers were cut in France, Italy and Spain, further damping households' already-fragile spending power.
The European Central Bank cut its key interest rate by 25 basis points to a record low of 0.50 percent at last week's meeting, after holding the rate steady for nine consecutive months.
A survey by think-tank Sentix today showed that investor confidence in the currency bloc improved in May after deteriorating in the previous two months, in a sign that the economic assessments of investors for the euro zone are stabilizing.
The European Commission last week lowered the economic outlook for the euro area for this year and the next, saying that the recovery is expected to be too slow to reduce joblessness.
The commission said that the economy will contract 0.4 percent this year, steeper than a 0.3 percent fall predicted in February as the region heads into its second year of recession.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.