Euro zone retail sales stronger than expected in February

Euro zone retail sales were stronger than expected in February, data showed on Monday, as some countries eased their COVID-19 pandemic restrictions before tightening them again in March.

The European Union’s statistics office said retail sales in the 19 countries sharing the euro rose 3.0% month-on-month in February for a 2.9% year-on-year fall.

Economists polled by Reuters had expected a 1.5% monthly rise and a 5.4% year-on-year decline.

“Given that Italy saw restrictions ease in February, helped the 8.4% increase in sales while the Netherlands allowed in-store pickups of online orders from mid-February, which resulted in a 5.4% increase for the month,” said Bert Colijn, euro zone economist at ING bank.

“The big question is whether eurozone consumers are eager to consume when the economy reopens,” he said. “With involuntary savings built up substantially over the course of last year, there is significant potential for a rebound.” 

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