06:40 AM EDT, 08/06/2024 (MT Newswires) -- The eurozone retail sector hasn't moved in line with the economic cycle for years now, said ING.

A long retail recession followed a post-pandemic boom and a recovery has been expected for some time, wrote the bank in a note to clients.

While indeed it looks like a bottom in retail activity has been reached, volumes are not increasing, stated ING. Tuesday's 0.3% m/m decline in June shows the consumer is taking longer to recover from the inflation shock and still maintains a preference for buying services over goods, although this preference is becoming smaller.

Overall, Q2 was better than expected for economic growth in the eurozone, but concerns about the economy slowing in the second half of the year remain, pointed out the bank.

Recent surveys don't give much reason to expect a further acceleration, and a slowing from the already weak pace of recovery is possible, added ING.

Much like in the United States at the moment, eurozone economic data looks fine for now, but there is cause for concern for the second half of the year, according to the bank.