Following a bad March in retail sales, Eurozone retail PMI’s leave a lot to be desired in April

Eurozone Markit retail PMI’s April 2018 7 May 2018

The next round of retail data from Markit was out earlier and it’s not been the best showing.

Eurozone 48.6 vs 50.1 prior
Germany 51.0 vs 51.5 prior
France 50.1 vs 50.0 prior
Italy 42.7 vs 48.0 prior

The headline Eurozone number just comprises of the three individual countries listed above so it’s not blanket coverage. Italy has done most of the damage in taking it into contraction. That was blamed on political worries and the way the Easter break fell but there’s more worrying signs underneath, as Alex Gill of Markit explains;

“The latest data highlighted a disappointing month for the eurozone retail sector. Monthly sales were down for the first time for over a year as signs of restricted consumer demand and increased uncertainty begin to show. This was particularly evident in Italy, where the rate of decline in in like-for like sales accelerated sharply and was the most marked for the better part of two years.

Forward-looking indicators add to the dull picture, with falls in purchasing activity and stocks of goods suggesting retailers are taking an increasingly cautious approach to their business operations. The one shining light was a further rise in staffing numbers. That said, without a rebound in customer demand we may see employment slip back into contraction territory in the coming months as well.”

The headline Eurozone retail sales for March were out last week and the pictures wans’t that bright there either. These PMI’s can often be a pretty good gauge for the next set of numbers and on this reading, we know where the problem is likely to lie.