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Retail Growing in Germany and France, Declining in Italy
Dec 1, 2010
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Retail in the Eurozone improved in November, even after factoring in the holiday boost, according to Markit, but there were major differences in the results for individual national economies.

Markit reported November sales rose on a monthly basis for the first time since July. The Eurozone Retail PMI moved above the no-change mark of 50.0 to 51.3, up from 48.0. The PMI was greater than its long-run average of 48.9 in the latest period.

Eurozone retail PMI data is based on responses from the three largest euro economies, and Markit said November data further showed a divergence in performance between the Franco-German ‘core’ and other ‘peripheral’ economies, particularly the region’s southernmost nations. Sales rose in Germany and France; Italy posted its steepest fall since June.

Germany showed month-on-month retail sales growth for the second month in a row in November, and the rate of expansion increased, making it higher than the long-run survey average.

France's sales increase was less steep, although still the sharpest since July, and came after a significant drop in October. Markit pointed out that its anecdotal evidence suggested French consumers are still cautious regarding the economic recovery; strong sales were driven by strong promotions.

Markit said Italy's retail decline rate was less severe in October but increased again in November to its fasted rate since June. Monthly retail sales have fallen in Italy consistently since February.

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