(BRUSSELS) - Consumers in the 15 nations sharing the euro reined in spending in March, confounding expectations that they would keep their wallets wide open despite a weakening economy, official EU retail data showed Wednesday.

The volume of retail trade in the eurozone fell O.4 percent in March from February and slumped 1.6 percent over 12 months, the European Union's Eurostat data agency said.

The data defied economists forecasts for retail sales to rise 0.3 percent over one month in the face of record inflation and growing signs that the eurozone economy is losing pace.

The March data also marked a slowdown from February when sales eased 0.2 percent from January and rose 1.0 percent over 12 months, Eurostat said, revising upwards a provisional estimate for February.

"Despite still improving labour markets and higher wage settlements in some countries -- notably Germany, eurozone consumers are clearly reluctant, or unable, to lift their spending," said economist Howard Archer at consultants Global Insight.

He said that consumers were beginning to feel the pinch of "elevated inflation, tighter credit conditions, higher interest rates, heightened concerns over the economic outlook and worries about long-term personal finances."

While slightly more upbeat, Jennifer McKeown at consultants Capital Economics said that the data indicated eurozone consumers could not offset the impact of slowing economic activity in Europe's main trade partners.

"The labour market is still in very good health, and although consumer confidence has softened lately it remains much stronger than in the US or the UK," she said.

"But the latest data confirm that the domestic household sector is so far doing nothing to make up for slowing external demand," she added.

Weaker retail sales in France weighed on the overall figures, falling 0.7 percent over one month and 0.8 percent over 12 months.

Germany fared only slightly better with retail sales in the regional economic heavyweight slipping 0.1 percent over one month and 1.1 percent over one year.

In the 27-nation EU, retail sales fell 0.7 percent but rose 0.4 percent over 12 months.

Further details - Eurostat

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