Retail sales in the eurozone rose more than expected in May after a plunge in April, but economists remained cautious, saying it was too early to say whether consumers finally will propel the bloc's economy. The European Union's statistics office Eurostat said on Tuesday that retail sales rose by 1.1 percent in May from April, the strongest monthly increase since April 2004.
On an annual basis, May retail sales in the 12-nation area rose 2.0 percent with sales of food, drinks and tobacco up by a similar 2.0 percent.
"It suggests that the eurozone consumer is not dead and buried yet," said Audrey Childe-Freeman of CIBC World Markets.
Economists polled by Reuters had on average expected retail sales in May to rise 0.4 percent on the month for an annual rise of 0.6 percent.
April retail sales plunged 1.1 percent on the month for an annual drop of 0.8 percent, Eurostat said, revising an earlier estimate of a monthly fall of 1.2 percent and an annual drop of 0.9 percent.
Sales of tobacco, food and drinks in the eurozone rose 2.2 percent in May from April, while non-food sales rose 0.5 percent.
The pickup in retail sales was helped by stronger sales in the eurozone's two largest economies, Germany and France, where May monthly sales rose 1.2 percent and 0.6 percent, respectively.
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