FX.co ★ Eurozone Retail Sales Contract in December

Eurozone retail sales experienced a 0.5% decline in December 2025 compared to the previous month, reversing a previously reported 0.1% increase in November and missing market predictions, which anticipated a 0.2% decrease. This downturn was primarily driven by non-food retail sectors, where sales plunged by 1.2%. This marks the most significant drop since September 2023 and interrupts a three-month streak of growth. Fuel sales remained stable for the second month in a row, while sales in food, drinks, and tobacco saw a slight rise of 0.1%, recovering from a 0.4% decline in November. Among the Eurozone's major economies, retail sales recorded notable reductions in France (-1.4%), Spain (-0.9%), and Italy (-0.5%), whereas Germany saw a slight increase of 0.1%. Annually, retail sales growth decelerated sharply to 1.3% in December, down from 2.4% in November and falling short of the anticipated 1.6%, highlighting a weakening in consumer activity as the year came to a close.