Euro zone retail sales volume rose by 1.6 per cent year-on-year in March, but slipped 0.4 per cent from the previous month, providing further evidence of weakening economic growth.
Economists had forecast growth of 2.6 per cent year-on-year and a drop of 0.1 percent month-on-month.
Food, drinks and tobacco sales fell by 0.6 per cent; clothing and shoes fell by 2.0 per cent and household goods fell by 1.4 per cent.
The bleak picture was further darkened by a survey which showed French consumer confidence plummeted into negative territory in May for the first time in six months as rising petrol prices and news of a rash of company lay-offs soured the French public's mood.
Meanwhile, the Reuters Eurozone Purchasing Managers' Index, also released today, showed manufacturing growth in the euro zone fell further below the critical 50 level in May to its lowest level since January 1999.