Euro zone retail sales fell sharply in April, missing expectations for a small monthly rise, data showed, as uncertainty over jobs and government spending curbed consumer demand.

The EU’s statistics office said retail sales, a good indication of household spending, fell 1.2 per cent month on month, the deepest fall since October 2008, for a 1.5 per cent year-on-year drop.

Consumer demand is weak because unemployment in the euro zone is at an almost 12-year high of 10.1 per cent and expected to rise further, which keeps a lid on wage growth and limits spending power. – (Reuters)