Courtesy of Mish.
Dismal economic conditions in the eurozone accelerate to the downside as evidenced by falling retail sales. Let’s take a look at the Eurozone in aggregate, as well as the three largest countries.
Eurozone Retail Sales Drop Sharply
The Markit Eurozone Retail PMI® shows Eurozone retail sales continue to fall sharply towards end of 2012.
Key points
- Sales fall for thirteenth month running in November
- German sales remain flat while Italy records another severe fall
- Rate of decline in France slows to weakest in five months
Summary of November findings
The Eurozone retail sector remained stuck in a sharp downturn during the penultimate month of 2012, according to Markit’s PMI® data. Sales fell for the thirteenth consecutive month, and remained well below the level seen one year earlier.
The PMI rose slightly in November to 45.8, from October’s 45.3. The latest figure signalled a sharp fall in retail sales compared with one month previously, and the
average for the fourth quarter so far (45.5) is the second-lowest since Q1 2009. Moreover, the trend for 2012 so far (45.6) is the lowest annual average of any year since the survey started in 2004. The previous record low was in 2008 (46.1).Retail sales across the single currency area fell on an annual basis for the eighteenth month running in November. The rate of decline was sharp, and
stronger than the average over this sequence. Year-on-year sales rose in Germany, but fell at a near-record pace in Italy. The annual rate of decline in France slowed since October, but remained sharp overall.Comments
Commenting on the retail PMI data, Trevor Balchin, senior economist at Markit and author of the Eurozone Retail PMI, said:
“November’s set of numbers portrayed the weak position the Eurozone’s retailers find themselves in going into the crucial festive season. Actual month-on-month sales continued to fall sharply, resulting in another marked drop compared with one year previously. The data are consistent with consumer spending having declined for five straight quarters come the end of the year.
Italy Retail Sales Sharpest Drop in 17 Months…
