Eurozone retail PMI remains in positive territory in September

According to the latest Markit retail purchasing managers’ index (PMI), the rate of growth in the retail sector picked up slightly in September, as the index rose from 51.4 in August to 51.9 in September.

The figure marked the second-strongest reading since April 2011, although it still pointed to moderate growth in overall sales and year-on-year sales growth was the weakest for three months.

However, the increase meant the retail PMI has now remained in growth territory for a fifth consecutive month, the longest sequence since 2006.

“The rate of growth as signalled by the index was fractionally faster than in August, owing to the PMI in Italy climbing to a five-and-a-half year high, though remained below the peak reached in July,” said Markit’s economist Phil Smith.

“Another indication that the sector’s health is improving was the sharpest rise in retailers’ buying levels since April 2011, in many cases reflecting efforts to build stocks amid strengthening demand.”

Among individual countries, Germany and Italy both recorded rises in retail sales last month, with the former registering the fastest rate of increase in three months, while the latter reported the strongest pace of growth since 2010.

However, sales in France declined for the second consecutive month.