Courtesy of Mish.
It’s a mixed bag of retail PMI news in Europe today (assuming of course one believes that spending is good).
Italy: Sharpest drop in retail sales since April
In Italy, Markit reports Sharpest drop in retail sales since April
- Rate of decline in retail sales accelerates for second straight month
- Stocks levels fall amid sharp drop in retailers’ purchasing activity
- Purchase price inflation dips to modest rate
The downturn in Italy’s retail sector gained further momentum in July. The level of trade fell at a faster rate, leading to an accelerated decline in retailers’ purchasing activity and contributing to a deterioration in business sentiment. There were also further notable reductions in profitability, employment and inventory levels on the month.
July saw an acceleration in the month-on-month rate of decline in Italian retail sales, as highlighted by a drop in the headline Markit Italy Retail PMI® from 40.7 in June to 38.2. This was its lowest reading since April, and one that was indicative of a sharp pace of contraction overall. The level of trade has fallen continuously on a monthly basis for almost two-and-a-half years.
The gap between actual and planned sales was the widest for four months in July, as almost half of businesses missed their targets. Firms attributed their underperformance to a combination of uncertainty and pessimism among consumers.
Germany: strongest sales growth for two-and-a-half years
- Retail PMI hits highest level since January 2011
- New job creation maintained in July
- Wholesale price inflation eases since June