Eurozone retail sales fall more than expected in March

Eurozone retail sales dropped by a bigger-than-expected 1.2% as inflation and rising borrowing costs took their toll on consumer spending in March.

The decline meant retail sales had fallen 0.4% in the first quarter, following a 1% drop in the previous quarter, economists said, as they pointed to a weakness in underlying demand.

Lower price-adjusted sales of many products, including food, drinks, and tobacco, more than offset higher automotive fuel sales in March, Eurostat said on Friday.

By country, the biggest decline was in Germany, where retail sales fell 2.4%.