Euro zone retail turnover shrank for the first time in four months last month as French sales slumped, according to a survey of purchasing managers published today.
The Bloomberg/NTC euro zone retail PMI fell to 49.7 from 52.2 in December, slipping back below the 50 mark that separates growth from contraction.
In France, the second-biggest economy in the 12-nation euro region after Germany, the retail PMI dropped to 46.2 last month from 51.5 in December.
The PMI for Germany, which accounts for around one-third of the 12-nation euro bloc's GDP, indicated slower growth in January. The German index fell to 50.4, the first drop since September, from 51.7.
The euro zone poll questioned retailers in Germany, France and Italy. Together, the three countries account for around 75 per cent of the euro zone's retail trade.