Markit reports the Eurozone Retail PMI shows further drop in sales at year-end.
Retail sales fall at faster rate in December
Rates of contraction accelerate in France and Italy , while growth eases in Germany
Wholesale price inflation remains close to November’s recent low
Latest PMI® data from Markit showed deteriorating trends with in the eurozone retail sector in December. Sales decreased a cross the big-three euro area economies combined, reflective of further contractions in France and Italy , as well as a growth slowdown in Germany. Adjusted for seasonal factors, the headline PMI dipped to 47.6 in December, from November’s 48.9, signalling a solid and accelerated decrease in overall sales. Trade was also down sharply compared with the corresponding month of 2013, with the year-on-year rate of decline faster than in November.
Imbalances strengthen as structural problems go unsolved.
Mike “Mish” Shedlock