Eurozone Retail Sales Jump

​Eurozone retail sales jumped in June as consumers reurn to the high street for a bit of retail therapy. Given the rocky start with lockdowns, retail sales ended the second quarter in positive territory. The Delta variant is still a concern, but things are looking good for retail sales to add to the GDP number in the third quarter.

The recovery from the lockdown is looking healthy with a 1.5% increase in retail sales in June. Indeed, sales are stronger than last year and this shows robust demand. The vaccine rollout is slower than expected but making progress as restrictions are being lifted. These factors are providing more tailwinds for the economic recovery.

The growth in July was mainly seen in non-food products, while internet sales decreased. So what we are seeing here is more of a rebalancing between online sales and bricks and mortar sales. Consumers are regaining confidence in venturing back to the shops safely. We are not out of the woods yet because we've still got concerns on the Delta variant. 

Looking forward to to the coming quarter, it remains to be seen whether we'll see some follow with good retail sales numbers in July. Was this just a good months with demand catching up after the lockdowns? We'll have to wait and see on that one. We've got some headwinds in terms of the risks presented by the Delta variant and the potential for more restrictions and lockdowns. However, we've got some strong tailwinds coming from strong consumer demand and this will certainly add to the positive outlook for GDP as the Eurozone economies continue to recover.