Eurozone Retail Sales Fall in December: Warning Signs for Consumption Recovery

Retail sales experienced a sharper decline than expected in December 2025, raising questions about the strength of the region’s consumer recovery. Official data from the European Commission released this week showed a 0.5% contraction in volume compared to the previous month, while November was revised downward with a mere 0.1% increase.

Significant Contraction in Sales Volume

The non-food products segment led the decline, recording weak performance right after the holiday season. In contrast, the food and beverages sector showed more resilience with slight growth. Year-over-year, sales volume managed to increase by 1.3% compared to December of the previous year, suggesting that although there is relative weakness, the 2024 baseline was also modest.

Differentiated Dynamics Among Major Countries

Geographical disparities were evident in the region. France, Italy, and Spain experienced month-to-month contractions in their respective sales volumes, reflecting vulnerable domestic demand. Germany, on the other hand, showed a more favorable performance with a modest increase, maintaining relative stability within the Eurozone.

Consumer Confidence: A Glimmer of Hope

Despite the bleak retail sales outlook, recent indicators from the European Commission published at the end of January pointed to an improvement in consumer confidence across the Eurozone during this month. Economic analysts project that growth in 2026 will be primarily driven by domestic demand and household spending. However, the weak performance of December sales suggests consumers still exhibit caution, which could limit economic growth momentum in the coming quarters.