Eurozone retail sales rise at slower pace in August

Retail sales in the Eurozone rose again in August, although the pace of increase slowed down from the previous month, figures released on Friday showed.

The index fell from to 51.4 in August from July's 54-month high of 54.2, but remained above the 50 threshold that signals expansion for the fourth consecutive month.

Germany, the Eurozone’s largest economy, saw sales rise solidly, albeit at a slower pace than in the previous month, as the headline PMI fell from 57.7 to 54.7,

Meanwhile France fared much worse, falling back into contraction as sales fell both on monthly and annual measures, Markit said, with the headline PMI sliding from 52.9 to 49.5.

“As was somewhat expected, retail sales growth in August failed to match the marked pace seen in July, when retailers reported favourable weather leading to a bounce in trade," said Phil Smith, economist at Markit.

"There was some payback, though the PMI indices for year-on-year sales and gross margins remained close to their
recent highs, pointing to solid underlying trends.

"Employment in fact continued to rise at a rate that was unchanged from July’s four-and-a-half year high, reflecting job creation in both Germany and France.”