Cyprus Retail Trade Declines In January While EU Retail Activity Shows Slight Growth

Overview

Data from Eurostat show that Cyprus recorded a 0.8% decline in retail trade volume in January 2026, while the European Union registered a slight increase. Retail trade across the EU rose by 0.1% compared with December 2025.

Monthly Performance: Cyprus Versus The EU

In January 2026, the euro area recorded a seasonally adjusted decline of 0.1% in retail trade volume, while the EU posted a 0.1% increase. Cyprus moved in the opposite direction, with retail activity falling after small increases recorded in previous months. Retail trade had increased by 0.1% in December 2025 following a 0.9% rise in November.

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Sector-Specific Insights

Sector data for the euro area show mixed developments across retail categories. Sales of food, drinks and tobacco increased by 0.3% compared with the previous month. Non-food products excluding automotive fuel declined by 0.2%, while automotive fuel sold in specialised stores fell by 1.1%. Across the EU, sales of food, drinks and tobacco increased by 0.4%. Non-food products declined by 0.1%, while automotive fuel sales decreased by 1.0%.

Annual Growth And National Variations

On an annual basis, the calendar-adjusted retail sales index increased by 2.0% in the euro area and by 2.3% across the EU. Several countries recorded stronger monthly increases, including Estonia with a 4.4% rise, Latvia with 2.8%, and Portugal with 2.0%. Other member states reported declines during the same period, including Slovakia, Slovenia, and Croatia. Luxembourg recorded a 24.7% annual increase in retail sales. Lithuania and Estonia also reported higher annual growth rates.

Market Implications

The latest data illustrate differences in retail performance across EU member states and sectors. Variations between national markets and product categories continue to influence consumer spending patterns across the region.

For businesses and policymakers, these figures provide additional context for assessing developments in retail activity, particularly in markets where growth remains uneven. The contrast between Cyprus and the broader EU also highlights how national trends can diverge from wider regional patterns.

Eurostat’s data provide further insight into how retail sectors across the EU are evolving as companies adjust to changing consumer demand and economic conditions.

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Mercedes-Benz Posts Higher Profit Despite China Slowdown

by THEFUTURE.TEAM

July 29, 2026

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

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Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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