Retailers in the 15 countries sharing the euro saw sales slow in February more than economists expected driven by weak consumer spending in Germany.
The volume of retail trade in the euro zone fell 0.5% in February from January while slipping 0.2% over 12 months, the European Union's Eurostat data agency said.
Economists had forecast retail sales would rise 0.3% over one month and remain flat over one year. The February data also marked a slowdown from January when sales rose 0.5% from December and nudged up 0.2% over 12 months.
Retail sales in regional heavyweight Germany weighed on the overall figures, falling 1.6% over one month and 3.1% over 12 months.
The euro zone's weakeness contrasted with the situation in the 27-nation EU, where retail sales rose 0.3% and 2% over 12 months, driven by a consumer spending boom in the bloc's newest members and strong sales in Britain.
Meanwhile, business activity in the euro zone slowed in March despite diverging trends among the bloc's bigger members.
The euro zone's purchasing managers' index (PMI), compiled by NTC Research, slid to 51.8 points, compared to 52.8 points in February and down from a first estimate of 51.9 points. A figure above the 50-point level indicates a growth in activity, while any figure below it signifies a contraction.
Meanwhile, the survey's component for the services sector fell to 51.6 points in March from 52.3 points in February and down from a first estimate of 51.7 points.
However, the overall survey painted a picture of diverging trends among the bloc's biggest members with activity picking up in France and Germany and slowing in Italy and Spain.
