Eurozone retail sales improve as 'big three' all record growth

Eurozone retail sales strengthened last month as the currency bloc's three largest economies all delivered simultaneous sales growth for the first time in over two years.

IHS Markit's eurozone retail purchasing managers’ index climbed to 52.3 from 50.8 the month before as France delivered much better growth and Italy moved into positive territory to offset a slight slowing in Germany.

With a PMI reading above 50 signalling growth, this was the sixth successive month of expansion for the bloc.

Germany's PMI eased back to 52.8 from 53 a month earlier, while France's reading rose strongly to 53.3 from 50.4 and Italy's up to 50.2 from 48.

Sales were also up on an annual basis to reverse the downturn seen in July and August.

“The latest data paint a positive picture of the eurozone retail sector as overall like-for-like sales growth accelerated to a three-month high," said Alex Gill, an economist at IHS Markit.

"Perhaps more encouraging though was the broad-based nature of the expansion, with an increase recorded in each of the 'big-three' eurozone economies for the first time in over two years.

"Buoyed by robust consumer demand, firms expanded their purchasing activity and staffing numbers, which reflected the sharpest degree of business confidence in four months. Nonetheless, a further squeeze on gross margins suggests the economic climate facing retailers remains challenging.”