Eurozone retail PMI continues to contract in November
Eurozone retail sales continued to fall in November, marking the fifth consecutive month of decline, Markit revealed on Thursday.
However, the rate of decline was at its slowest during this time as the downturn in both France and Italy eased and growth in Germany saw a pick up to a solid pace.
The retail purchase managers’ index (PMI) reading for November was 48.9 compared to 47.0 the previous month, as the pace of decline eased.
France saw a small improvement from 46.0 to 47.9, while in Italy the decline in employment drove the rate of retail sales to 44.2, down from 43.1 the month before.
Germany saw a stronger growth in retail sales in November with a rate of expansion of 52.8, an increase from 50.2 one month earlier due to promotional offers and advertisement campaigns.
Phil Smith, economist at Markit, said: “Germany recorded faster growth, however, amid another rise in consumer confidence. Consumer spending in the eurozone’s largest economy appears somewhat more resilient to the headwinds weighing on other areas.
“Gross margins – often a good gauge of the retail sector’s underlying health – fell across each of the big-three in November, with frequent mentions made among panellists of heavy discounting.”