France retail sales rise for second successive month

Markit's monthly Retail PMI survey for France showed that French monthly sales increased at a faster rate, while the annual sales measure signalled the weakest decline since March. French retailers reported an increase in employment levels for the first time in six months in June, albeit at a fractional rate.

Data released earlier on Wednesday showed that the seasonally adjusted headline Retail PMI rose to 51.0 in June compared to the reading of 50.6 in May. France retail sales rose for a second successive month, and at a quicker rate. Retailers remained optimistic that sales will exceed planned levels in July after seeing some disappointment to previously set plans in June.

Retailers’ inventories of goods for resale decreased for a third successive month in June. A further increase in wholesale prices was signalled, the latest rise was the weakest in four months and moderate overall. Weaker price inflation saw a less marked fall in gross margins. Pricing power was dented by strong competitive pressures.

“June’s PMI data painted a healthier picture of the French retail sector," said Alex Gill, Economist at Markit.