Eurozone retail sales showed signs of stabilization in November 2025, with year-on-year volume growth reaching 2.2%, up from 1.6% in the previous month. This marks the second consecutive monthly increase in annual growth following a gradual decline from 3.2% in June 2025. On a month-on-month basis, retail sales volumes edged up 0.2%, indicating modest but positive momentum in consumer activity as households increased spending amid easing inflationary pressures.
Recent trends suggest that the earlier slowdown in consumption may be reversing, supported by improving real income conditions and sustained labor market resilience across major economies in the region.
The rebound in November breaks a downward trend observed between June and October, when year-on-year growth steadily cooled from 3.2% to 1.3%, raising concerns about weakening consumer confidence. However, the pickup in November signals renewed demand, particularly in core consumption categories. While detailed category data for food, beverage, and tobacco, as well as non-food products, is not yet available, the overall improvement suggests broad-based spending recovery, excluding vehicle sales (G45) and wholesale (G46), which are not part of the G47 retail sales measure.
This revival may reflect seasonal factors, promotional activity, and greater household willingness to spend after months of restraint.
Analysts note that although inflation remains above pre-pandemic averages, its deceleration over recent quarters has helped restore some purchasing power. Combined with steady employment figures, this has likely contributed to stronger retail performance toward the end of 2025. The European Central Bank will likely view these data as an encouraging sign that domestic demand remains resilient without triggering renewed inflationary spikes.
Still, economists caution against over-optimism, emphasizing that sustained growth will depend on wage developments and fiscal policies in key member states. Upcoming releases will provide further clarity on whether this upturn represents a durable recovery or a short-term rebound.