Eurozone sales rise despite clothing and footwear decline
The mid-month Bloomberg Eurozone Retail Purchasing Managers' Index rose to 51.3 in November from 48.0, driven by sales growth in Germany and France. Sales rose on a monthly basis for the first time since July.
Germany registered month-on-month growth in retail sales for the second month running in November. Moreover, the rate of expansion sharpened.
The increase in French sales was the sharpest since July, and reversed a steep drop in the previous month. However, evidence suggests consumers remained generally cautious regarding the wider economic recovery, and sales continued to be supported by heavy promotional activity.
Having eased in October, the rate of decline in Italian retail sales accelerated in November to the fastest rate since June. Sales have fallen continuously on a monthly basis since February.
By sector, autos and fuel and clothing and footwear posted the steepest falls in yearly sales. Sales of food and drink rose sharply year-on-year.
Trevor Balchin, senior economist at Markit and author of the Eurozone Retail PMI, said: “The Retail PMI rebounded in November; reducing the risk that consumer spending will downshift in Q4.
“Sentiment within the sector also appears to have improved and, although the dip in retail workforces is a negative point, strengthening headcounts in manufacturing and services suggest the overall labour market is improving.”
