German retail PMI contracts in Nov, falls for first time in ten months

Germany monthly Retail PMI for November slips into contraction, but the rate of contraction was only marginal. Data published by Markit on Tuesday showed that Germany's seasonally adjusted headline Retail PMI fell to 49.6 in November from 51.0 in October. It was the first month-on-month decline in German retail sales since January.

The annual measure highlighted further growth, year-on-year expansion being the most marked in six months. Input costs were up sharply while gross operating margins were squeezed again. A modest rise in inventories was seen on account of higher purchasing activity.

Survey data showed that retailers remained optimistic about the one-month outlook. However, the level of positive sentiment was the lowest since July. Margins at German retailers declined for the fifth month running in November on account of falling sales and rising input costs.

Purchasing activity expanded at a slightly stronger rate during November. Employment growth was maintained in November, but the rate of job creation was only marginal.

"The rate of contraction in sales was only marginal overall and should not be overstated. It could just be an outlier rather than the start of a substantial downturn.” said Oliver Kolodseike, Economist at IHS Markit.

​FxWirePro's Hourly EUR Spot Index was at 42.9564 (Neutral), while Hourly USD Spot Index was at -77.4707 (Bearish) at 1320 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex