Retail sales in the eurozone rose more than expected in May, data showed, but analysts saw the jump in the volatile indicator as unlikely to point to improving health for a slowing economy burdened by inflation. Retail sales, an indication of consumer demand, rose 1.2 percent month-on-month and 0.2 percent annually in the 15-country zone, the European Union statistics body said on Thursday.
Germany's 1.3 percent monthly growth provided a boost. Economists polled by Reuters had expected a 0.5 percent monthly rise for the euro area and a fall of 0.8 percent year-on-year. "The monthly rebound is very encouraging, but it comes after two very weak months. The overall trend remains very subdued. Private consumption is probably stagnating," said Holger Schmieding, co-head of European economics at Bank of America.
Eurostat revised down slightly its retail sales data for April to a fall of 3.0 percent year-on-year from the 2.9 percent drop initially reported, leaving the monthly reading unchanged at a decline of 0.6 percent.
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