Markit France PMI : French retail sales fall at slowest pace for a year in June

Chris Williamson

Sujets

• PMI
• Markit Group
• Retail
• France

Informations

• Publié par: Fil_Economie
• Publié le: 27 juin 2013
• Nombre de lectures: 25
• Langue: English

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News Release
®Purchasing Managers’ Index
MARKET SENSITIVE INFORMATION
EMBARGOED UNTIL: 09:10 (UK Time), 27 June 2013

®
Markit France Retail PMI

French retail sales fall at slowest pace for a year in June

®
Key points: The headline Retail PMI climbed to 48.9 in June,
from 45.3 in May. The latest reading was the
 Month-on-month decline in sales eases...
highest for a year and indicative of only a modest
 ...although year-on-year measure still shows rate of contraction. Although there were reports
from survey respondents of a difficult economic sharp drop
climate and lower customer footfall, some panellists
 Rate of job shedding moderates
indicated that new commercial campaigns and
Historical overview: promotional offers had cushioned the fall in sales.
50 = no change on previous month (seasonally adjusted) In contrast, the year-on-year measure signalled a
65 marked rate of decline in sales, with the latest fall
similar to that registered in May. Poor weather, a
tough economic backdrop and weak consumer 60
confidence were all reported by panellists to have
weighed on sales.
55
Actual sales once more failed to match previously
set plans in June. Although the extent of the latest
50
shortfall was the least marked since January, it was
still considerable.
45
French retailers are nevertheless optimistic with
regard to the one-month outlook for sales. That
40 said, the degree of optimism was the lowest in five
2004 2005 2006 2007 2008 2009 2010 2011 2012 months.
Summary:
Factors expected by retailers to boost sales over
the coming three months include better weather, This release contains the June findings from the
® store refurbishments and commercial strategies. monthly Retail PMI survey for France, produced by
Those factors set to depress sales include a tough Markit and based on a panel of 300 retailers. The
economic climate, weak consumer confidence and headline figure is the Retail PMI, which measures
competitive pressures. month-on-month changes in sales.
Gross margins at French retailers remained under French retailers indicated a slower month-on-month
substantial pressure in June, with the rate of fall in sales during June. However, the annual
decline accelerating since May. Strong competitive measure still signalled a steep rate of decline.
pressures were reported to have led to widespread Employment decreased at a weaker pace, but
price discounting, while a faster rise in purchasing margins continued to be squeezed to a
costs was also commented on as a factor considerable extent amid strongly rising purchase
squeezing gross margins. prices. Stocks of goods for resale increased
slightly, despite a faster reduction in buying activity.
French retailers indicated a sharper rise in average
purchasing costs during the latest survey period.
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Comment: The rate of wholesale price inflation quickened to
the fastest since January, with panellists reporting
Jack Kennedy, Senior Economist at Markit and
that suppliers had passed on increased raw
author of the France Retail PMI, said:
material costs.
“Although sales fell again in June, the slower pace
Inventories of goods for resale increased for the
of decline signals respite for retailers. The easing
first time in ten months during June, albeit
contraction mirrors trends seen in the
modestly. This was despite purchasing activity
manufacturing and service sectors, as shown by
falling at the sharpest rate in three months.
last week’s Flash PMI data. However, the year-on-
Staffing levels at French retailers decreased further year measure indicated that retail sales remain well
in June. However, the rate of job shedding eased to down on the same period one year ago, highlighting
the weakest in 2013 so far. the persistent challenging conditions on the high
street.”

-Ends-



For further information, please contact:
Markit
Jack Kennedy, Senior Economist Caroline Lumley, Corporate Communications
Telephone [phone] Telephone [phone]
Email [e-mail] Mobile [phone]
Email [e-mail]

Notes to Editors:
“PMI” is an acronym for Purchasing Managers’ Index, a type of survey developed originally for tracking business conditions in the
manufacturing sector. Markit now uses “PMI” to describe the methodology used for surveys also undertaken in the services, construction
and retail sectors.
The success of the PMI surveys lies in their ability to provide a rapid and reliable guide to what is really happening in the economy from
month-to-month.
For the France Retail PMI, Markit Economics has recruited a representative panel of retail companies. The panel includes large chain
retailers as well as smaller retailers to ensure balanced representation of the true structure of the French retail sector. Similarly, the
composition of the panel in geographical terms and by classification of retailer (i.e. type of good sold) is monitored to ensure accurate
representation.
Markit Economics ensures the correct structure remains in place over time and that response rates remain sufficiently high to generate
reliable economic data.
Data collection occurs via the completion of questionnaires by survey panel members during the second half of each month.
The percentage figures of companies reporting an improvement, deterioration or no change for each survey variable are converted into a
single-figure “diffusion index” for each variable. Diffusion indexes vary between 0 and 100, with a reading of 50.0 signalling no change on
the previous month. Readings above 50.0 signal growth on the previous month and readings below 50.0 signal contraction. The greater the
divergence from 50.0, the greater the rate of change signalled.
The methodology includes the automatic weighting of each survey response in order to ensure that the effect of each response on the final
figure is proportional to the size of the responding company.
Where appropriate the indices are seasonally adjusted to take into consideration expected variations for the time of year. Markit do not
revise underlying survey data after first publication, but seasonal adjustment factors may be revised from time to time as appropriate which
will affect the seasonally adjusted data series. Historical data relating to the underlying (unadjusted) numbers, first published seasonally
adjusted series and subsequently revised data are available to subscribers from Markit. Please contact [e-mail].
The use of the diffusion index methodology means that the results for the Retail PMI will be directly comparable with PMIs for other sectors,
such as manufacturing, services and construction.



About Markit
Markit is a leading, global financial information services company with over 2,800 employees. The company provides independent data,
valuations and trade processing across all asset classes in order to enhance transparency, reduce risk and improve operational efficiency.
Page 2 of 3 © Markit Economics Limited 2013
Its client base includes the most significant institutional participants in the financial market place. For more information, see
www.markit.com.
About PMIs
® ®Purchasing Managers’ Index (PMI ) surveys are now available for 32 countries and also for key regions including the Eurozone. They are
the most closely-watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their
ability to provide up-to-date, accurate and often unique monthly indicators of economic trends. To learn more go to
www.markit.com/economics.











The intellectual property rights to the France Retail PMI provided herein is owned by Markit Economics Limited. Any unauthorised use, including but not
limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markit’s prior consent. Markit shall not have any
liability, duty or obligation for or relating to the content or information (“data”) contained herein, any errors, inaccuracies, omissions or delays in the
data, or for any actions taken in reliance thereon. In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of
® ®
the use of the data. Purchasing Managers' Index and PMI are registered trade marks of Markit Economics Limited. Markit and the Markit logo are
registered trade marks of Markit Group Limited.
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