Euro retail sales fell in November as consumers start to tighten their belts.

Eurozone retail sales fell to their lowest level since 2004 in November, the monthly Bloomberg Eurozone Retail Purchasing Managers’ Index (PMI(R)) has indicated.

According to the index – a mid-month survey of economic conditions in the Euro area retail sector and providing data one month ahead of government issued statistics – figures fell from 48.0 in October to 45.9 in November, signalling a decline in sales for the second consecutive month.

Although anecdotal, evidence from respondents warned of economic and political uncertainty across the three major Eurozone economies in November, with reports of consumers adopting a ‘wait and see’ approach to spending as a slowdown loomed.

High oil and food prices were cited as a concern, leading to increased fuel and energy bills and the readjustment of household budgets.

Of three countries covered by the survey – France, Italy and Germany – Germany saw the steepest rate of decline, from 48.6 to 43.6. Sales were down for the second month running, and at the fastest rate since May 2004.

In Italy, sales dropped for the ninth consecutive month from 48.0 to 45.3 – the second-steepest monthly fall since June 2005.

France saw the weakest rate of contraction of the three countries, meanwhile, with the index rising 47.3 to 48.8.

Annual sales varied considerably depending on the types of goods. The steepest rise in prices by product sector was recorded in food and drink (for the fifth month running), and the rate of inflation hit a new record high.

Historically high rates of list price inflation were also seen for pharmaceuticals, household goods and autos.

By Natasha Piscitelli