Eurozone clothing and footwear strides ahead
The mid-month Bloomberg Eurozone Retail Purchasing Managers' Index has reached 50.5 in September compared with 51 in August. However, although the recent growth represents an improvement on the declines shown in the three months to July, sales during the third quarter overall have been the weakest seen since the first quarter of 2006. The clothing and footwear sector reported by far the strongest increase in annual sales in September; with spend on seasonal items lifted by better weather, having fallen sharply in August. Moreover, the rise was the third-largest in the history of the survey. France saw the strongest increase in sales, with month-on-month growth hitting a five-month high, linked in part to improved weather. The index increased from 51.1 in August to 54.2, a marked improvement compared with July's 18-month low. Germany recorded a more modest increase in sales than France. The index fell from 53 to 51.3, but the data signalled a continued recovery from the falling sales pattern seen in the three months to July. Italy recorded a decline in sales for the seventh consecutive month, and the rate of decline hit a 27-month high as the index fell from 47.8 in August to 44.1.
