Euro zone retail sales flat in August despite fuel, food gains

BRUSSELS (Reuters) - Euro zone retail sales were unchanged in August from July as consumers filled up their cars with more gasoline and diesel, but spent less on non-food products such as clothing, books and electrical goods.

The European Union's statistics office Eurostat said retail sales in the 19 countries sharing the euro was unchanged during August for a 2.3 percent year-on-year increase. Economists polled by Reuters had expected a 0.1 percent monthly decline and a 1.8 percent annual increase.

The weak reading in what for many is a holiday month followed a strong performance in July, when sales only fell for computer equipment and books.

July's expansion was also revised up to 0.6 percent on a monthly basis and 3.0 percent year-on-year.

Sentiment in the retail sector has risen steadily since June, with a pick-up in the views of both present and future sales. However, consumer confidence, as measured by the European Commission's monthly economic sentiment survey, has weakened over that time.

The volume of broadly cheaper automotive fuel sold rose by 1.8 percent during the month, while sales of food, drinks and tobacco also grew 0.8 percent. However, non-food product sales declined by 0.3 percent.

Retail sales in the euro zone's biggest economy Germany were down 0.4 percent month-on-month in August and were 0.3 percent higher in the second biggest France.

In the 28 countries of the European Union, sales were also flat in August month-on-month and up 2.6 percent from a year earlier.

(Reporting By Philip Blenkinsop)