May retail sales declined 0.4 percent on the month in value, indicative of weakening consumer appetite. Food value decreased 0.9 percent and non-food value showed no change. Volumes fell 0.5 percent, with food decreasing 1.2 percent and non-food showing no change.

On a yearly basis, nominal sales grew 1.3 percent, as the value of food sales grew 2.5 percent and that of non-food grew 0.4 percent. Volumes were down 0.3 percent on the year, with food down 0.4 percent and non-food down 0.1 percent. Within the non-food category the largest nominal decline was in stationary, books and mazaines (down 3.5 percent) and computers (down 2.6 percent).

Compared to May last year, the value of retail sales for large-scale distribution grew 3.2 percent while small-scale distribution declined 0.4 percent. Non-store retail sales showed no change while E-commerce declined 0.9 percent.

Retail sales measure the total receipts at stores that sell durable and nondurable goods. The headline data are expressed in nominal terms but volume statistics are also available. Autos are excluded. Only a very limited breakdown of subsector performance is available in the first report but much greater detail is provided in the following month's release. The Italian National Institute of Statistics (Istat) is the main producer of official statistics in Italy.

With consumer spending a large part of the economy, market players continually monitor spending patterns. Retail sales are a measure of consumer well-being. The pattern in consumer spending is often the foremost influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.