Fall in Eurozone retail sales slows in July, Markit says

Euro area retail sales continued to shrink in July, led by a sharp contraction in Italy, the results of a widely-followed survey revealed.

The headline Markit Eurozone Retail purchasing managers´ index printed at 48.9 in July, ahead of June´s reading of 48.5 but still below the 50.0-point threshold which signals growth in like-for-like sales.

July´s reading marked the fourth successive print below 50.0 in the past five months.

Like-for-likes continued to grow at a steady pace in Germany and France but were supported by increased promotional activity in the latter economy, leading to a "notable" deterioration in gross margins, according to the survey-compiler.

To take note of too, the fall in Italian sales remained close to June´s 31-month record low.

"Germany remains the brightest light, with sales rising for the sixth month running and up sharply on a year-on-year basis,” Markit economist Phil Smith said.

July’s survey showed a sixth straight monthly increase in stocks of goods for resale held by retailers.

"Confidence towards future sales prospects was at a two-year low in July, though outright pessimism was confined to the Italian retail sector."