BRUSSELS (Reuters) – Retail sales in the euro zone fell in July due to lower fuel consumption, data showed on Wednesday by Eurostat, which also said that sales increased in June unlike to what was originally announced.

Retail sales volume in the 20 countries sharing the euro fell 0.2% in July from June and 1% year-on-year.

These figures are to be compared with the average forecasts of economists polled by Reuters, who expected a monthly decline of 0.1% and a decline of 1.2% over one year.

The June figures have been revised upwards, with now a reported 0.2% increase m/m and a 1% decrease y/y, compared to declines of 0.3% and 1.4% initially reported.

Consumption has remained sluggish due to falling real incomes and the fact that households are now spending a larger share of their income to cope with high energy prices and loan and mortgage repayments, which erodes demand for other goods.

Households also increased their savings due to rising interest rates and as a precautionary measure in a context of weak economic growth.

Year-on-year, retail sales have fallen for ten consecutive months.

However, sales of food, beverages and tobacco rose 0.4% month-on-month in July and sales of non-food products rose 0.5%, with an increase of 3.8 % for online sales. Fuel sales fell by 1.2%.

(Written by Philip Blenkinsop; Victor Goury-Laffont, edited by Blandine Hénault)

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