Falling eurozone retail sales underscore the softness of household consumption
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4 itemsFalling eurozone retail sales underscore the softness of household consumption
ING's June eurozone retail sales commentary underscores a subdued consumer backdrop, with a 0.3% month-on-month decline and a slowdown in annual growth to 0.7%. The note argues that consumption was not a major growth driver in Q2, pointing to energy price pressures on lower-income households and uncertainty hitting discretionary spending. While some improvement is expected in Q3, ING stops short of forecasting a consumption boom, citing a sticky savings ratio. This narrative sits against a consensus that expects a gradual EUR/USD recovery, with firms like JPMorgan targeting 1.10 by March 2026, though the data suggests downside risks to that view.