Eurozone Retail Sales Dive in December, Biggest Drop in Countries With Most Restrictive COVID Policies

An empty restaurant waits for customers in Cologne, Germany, on Jan. 7, 2022. Martin Meissner/AP Photo

Retail sales in the 19 European countries that use the euro came in far weaker than expected in December, the same month that saw inflation in the region spike to a record high, with the biggest retail sales drops concentrated in countries with the strictest COVID-19 measures.

Eurostat, the European Union’s statistical agency, reported Friday that retail sales declined by 3 percent month-over-month in December, with consensus forecasts expecting a far more modest decline of 0.5 percent. On an annual basis, euro area retail sales rose 2 percent, versus projections for a 5.1 percent gain.