Lack of consumer confidence, retail sales in the eurozone in July rise weakly

On September 5, Jinshi data, the euro area's shopper spending only slightly increased in July, as the actual income rise momentum was lower than expected. Retail sales rose by 0.1% in July, lower than the market's expected 0.3%. The data shows that spending on food and other goods increased that month, but fuel sales declined. The sluggish retail sector indicates that despite the pump in wages and decreasing inflation, consumers in the euro area still lack confidence in consumption. The sentiment of euro area households reached its highest level since the escalation of the Russia-Ukraine conflict in early 2022 in July, but declined in August, raising calls for the European Central Bank to lower interest rates for the second time in September.