Like-for-like sales at eurozone retailers increased for the tenth time in as many months during January, the longest period of growth in the series history.
The rate of growth slowed, reflecting softer increases in Germany and France, while a decline was evident in Italy.
The headline IHS Markit Eurozone Retail Purchasing Managers’ Index (PMI) – which tracks the month-on-month changes in retail sales in the bloc‟s biggest three economies combined –fell to 50.8 in January, from 53.0 in December.
Gross margins faced by retailers operating inside the currency bloc were squeezed during the latest survey period, thereby continuing a trend that has been observed since data collection began in January 2004. Margins fell in Germany and Italy, with the latter posting the steeper decline. In contrast, French retailers report no change from the preceding month.
Eurozone retailers recorded a further rise in average purchase costs during January. Moreover, the rate of inflation quickened from the previous month and moved above the long-run series average. Inflation was broad-based across the „big-three‟ eurozone economies, with by far the sharpest increase evident in Germany, followed by Italy.
Source: Markit economics, https://www.markiteconomics.com