Eurozone Retail Sales Fell in March on Iran War

By Don Nico Forbes

Eurozone retail sales slipped in March, with falling consumer sentiment due to the war in Iran suggesting demand is likely to weaken further over coming months.

Volumes were down 0.1% on month compared with a 0.3% decline in February, the European Union's statistics agency said Thursday. This fell short of a consensus of economists polled by The Wall Street Journal, which expected a rise of 0.1% in March.

However, the data for March is unlikely to capture the full extent of the energy-price shock. While consumers faced a prompt rise in prices at the pump after attacks on Iran by the U.S. and Israel in late February, the squeeze on disposable income is expected to ramp up further in the coming months, which could weigh heavily on retail demand.

Write to Don Nico Forbes at [e-mail]

(END) Dow Jones Newswires

05-07-26 0523ET