| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : EU Economy Last Updated: Jul 9, 2014 - 12:28 PM


Eurozone retail sales PMI flat in June as falls in France and Italy offset German gains
By Finfacts Team
Jul 8, 2014 - 1:04 AM

Email this article
 Printer friendly page

Retail sales in the Eurozone were unchanged on the month in June, the latest PMI (purchasing managers' index) data from Markit showed. There were marked differences in country-level trends, meanwhile, with a sharp and accelerated increase in sales in Germany contrasting with a renewed decline in France and a deeper downturn in Italy.

The Markit Eurozone Retail PMI - - which tracks month-on-month changes in like-for-like retail sales - - read 50.0 in June, little-changed from May’s 49.9 and indicative of a flat trend in sales. Compared to the situation one year earlier, trade was down moderately during June, according to firms.

Commenting on the data, Phil Smith, economist at Markit, which compiles the Eurozone Retail PMI survey, said: "The latest retail PMI data show a flat trend in Eurozone retail sales forming, a relative positive in the context of the recent prolonged downturn. The stagnation hides a growing divergence in country-level performance, however. The gap between Germany’s headline retail PMI and the average of those for France and Italy has increased throughout the second quarter to the widest for almost a year. Any hopes that consumer spending in France and Italy had turned the corner are looking a little premature."

Eurozone retail sales were supported by continued growth in Germany, where trade rose sharply on the month and to the greatest extent for almost three-and-a-half years. In stark contrast, France’s retail sector showed renewed weakness as sales there fell solidly, offsetting back-to-back marginal increases in the first two months of the quarter. Moreover, June’s decrease was the sharpest so far in 2014. A deepening downturn was meanwhile seen in Italy, where the rate of decline in sales accelerated for the second straight month to the fastest since February.

At the aggregate level, retailers’ purchasing activity followed the trend in sales and was unchanged in June after a fractional decrease mid-quarter. Stocks of items for resale meanwhile rose for the seventh straight month, and at the fastest rate since April 2011. This was largely due to sales being markedly lower than targets on average.

Despite the stagnation in sales in the Eurozone, retail employment rose for the first time in ten months. The rate of job creation was only marginal, however, with recruitment activity in Germany largely negated by continued staff shedding in both Italy and France.

June data meanwhile pointed to an uptick in the rate of wholesale price inflation facing retailers in the euro area, marking the first acceleration in cost inflation since the start of the year. Accordingly, data showed a firmer squeeze on gross margins, which deteriorated to the greatest extent since last November.

Finally, retailers’ outlook for sales* remained positive, although the degree of confidence weakened further from March’s recent high to a five-month low.

* Companies are asked whether they expect next month’s sales to be higher, lower or the same as plans.

For the Retail PMI, Markit has recruited a representative panel of retail companies in France, Germany and Italy. Together, these three countries account for approximately 62% of total Eurozone retail sales by value.

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

EU Economy
Latest Headlines
Spain's strong recovery to slow in the next few years
Italy's Mezzogiorno is Achilles' heel of Euro Area - lowest birth rate since 1862
Euro Area GDP grows at weak 0.3% in Q2 2015
German GDP up 0.4% in Q2 2015; France's GDP stagnates
Germany's Surplus: Lots of critics; Credible solutions scarce
Euro Area industrial production dips in June and May after a flat April
Greece faces two years of recession according to EU officials
High EU youth unemployment rate not as bad as it seems
Eurozone retail PMI surges to highest since January 2011
ECB monetary policy still tight for Southern Europe
German exports fell in June — surplus at record; Exports up 13.7% year-on-year
Eurozone manufacturing sector continued to expand in July
Weak euro unlikely to have significant impact on Euro Area growth
Is Euro Area Ireland's top trading partner?: EU28 is overwhelmingly UK's
German car firms boost exports from Spain, UK, Portugal, Czech Republic, Slovakia, Hungary and Romania
Flash Eurozone manufacturing/ services PMI close to four-year high despite Greek crisis
Krugman calls euro a Roach Motel; Hotel California gets 1-star grade
Greece & Euro Crisis: July 2015 articles from Finfacts
Greece and other poor countries in Euro Area will not become rich
Euro Area manufacturing/ services PMI hits four-year high in June
Western European car market: Recovery continues
Greece could become a failed state like Venezuela
Multinational companies pay on average 30% less tax than domestic competitors in EU
EU's list of 30 tax havens omits the biggest 4 in Europe
China to invest in Juncker's European investment fund
Greek talks collapse; Game theorists gambling with future — Germany's vice-chancellor
German exports and industrial production in strong rises in April
Tackling Inequality: Scandinavian countries have the most successful welfare systems in Europe
Eurozone unemployment fell by 130,000 in April 2015 — down 849,000 in 12 months
Eurozone service sector business activity slowed during May
German 2015 GDP forecast cut; Jobless level at 24-year low
Eurozone manufacturing in modest acceleration in May
FDI into Europe at record in 2014; UK on top: Germany location for future investment
Eurozone economy loses growth momentum; Jobs growth rises
Athens leak suggests Juncker has plan for Greece
Draghi will not end QE early but warns of risks
Eurozone grows faster than US and UK in Q1 2015
German GDP at slower pace, France faster in Q1 2015
Germany may cut income tax; Germans still shun risky investments
Germany had record exports and imports in March 2015