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Signs of pick-up in euro zone sales

Euro zone retail sales were stronger than expected in August, growing by 0.9% from July and 2% over 12 months, figures published by the EU's Eurostat statistics agency show.

The figures defied analysts expectations for growth of only 0.5% over one month and 1.1% over one year. In July, retail sales had fallen 0.5% in the month and 0.2% over the year.

Economists have been looking for signs of improving household demand, which has been the weak link in a recovery underway in the euro zone as business confidence improves and industrial output picks up.

But the results were mixed across the 12 countries, with the retail sectors in Belgium, Finland and France in good health while German consumers remained reluctant to take out their wallets.