Eurozone Economy: Consumption and Manufacturing Remain Resilient

■ Eurozone retail sales rebounded in May, with consumption remaining resilient and further improvement expected in June.  
■ German industrial orders and production both rebounded, and the manufacturing sector remained stable. 
 
Eurozone retail sales (up 0.2% month-on-month) returned to growth in May after declining in April, indicating that consumption in the region remains resilient. The growth in May was mainly driven by Germany (up 1.1% month-on-month), where government policies curbed price increases and fuel sales rebounded. Spain (up 0.6% month-on-month) also maintained steady growth; on the other hand, France (down 0.3% month-on-month) and Italy (down 0.3% month-on-month) saw declines. Across the Eurozone, fuel sales continued to decline in May, but lower energy prices and increased demand for air conditioning amid high temperatures suggest further growth potential in June. 
 
German industrial orders (up 1.9% month-on-month) resumed growth in May after declining by 3.2% month-on-month in April. Even excluding large orders (up 1.0% month-on-month), May still saw growth. Despite recent significant monthly fluctuations in order data, the overall trend remains one of growth. A substantial increase in automobile production drove industrial production in May (up 0.9% month-on-month). While some of this growth may have been influenced by companies scheduling production ahead of schedule to secure inventory, overall, German manufacturing activity remains resilient.