Greek Retail Sales (Jun YY) 1.9% (Prev. 6.8%)

A deceleration of this size in a single month of Greek retail sales is, on past form, more likely to reflect calendar effects, the timing of Orthodox Easter and tourism seasonality than a clean break in the consumption trend, and episodes of this kind have typically been revised or reversed in the following print. Greek tier-two releases sit well down the euro area data hierarchy: they do not feed the ECB reaction function directly and historically move neither the euro nor peripheral spreads, which price off sovereign issuance, ECB guidance and the core-country data flow. The channel that matters, if any, is the growth narrative around the Greek recovery, where consumption has been a principal driver, so a run of soft prints rather than one reading is what has tended to shift that story. Worth noting is the distinction between the annual rate, which is flattered or depressed by base effects, and the underlying sequential momentum. The follow-ons are the next monthly print for confirmation or mean reversion and any commentary from domestic statisticians on seasonal adjustment. As a standalone release, the signal is low-grade.