Eurozone footwear sales inspire hope
The Bloomberg Eurozone Retail Purchasing Managers' Index (PMI) was at 48.4 in April compared with 44.1 March, indicating the weakest rate of decline since the current sequence of contraction began last June. Although sales have now fallen for 11 consecutive months, the rate of decline has eased from the series record registered last November.
Retail sales fell again compared with March sales in each of the three largest euro economies: Italy, Germany and France. In each case the rate of contraction slowed and the differentials between the three countries narrowed.
Italy continued to register the steepest overall fall in retail sales. However, the month-on-month sales index rose from 41.9 in March to 46.8 to indicate the weakest rate of decline since October 2007.
Retailers in Germany saw sales fall at the slowest pace in the current 11-month sequence of decline. Sales were down only modestly during April to represent a marked contrast to the steep rate of decline recorded at the start of the year. The month-on-month index for Germany picked up from 44.4 in March to 48.9 in April.
France registered only a marginal decline in sales. The month-on-month index rose from 45.7 to 49.2, indicating the smallest decline for three months.
Three sectors posted annual sales growth in April. Food and drink retailers reported the strongest rise, followed by footwear and clothing, with sales in both cases benefiting from good weather and the later timing of Easter. Footwear and clothing sales came closest to planned levels in April.
