The headline IHS Markit Eurozone Retail PMI - which tracks the month-on-month changes in retail sales in the bloc‟s biggest three economies combined - fell to 52.0 in May, from 52.7 in April. The reading signalled another solid, albeit marginally weaker rise in monthly sales. On the other hand, sales were down on an annual basis, thereby reversing the upturn seen in April. Moreover, the decline was solid overall, driven by a marked downturn in Italy.

Alex Gill, economist at IHS Markit which compiles the Eurozone Retail PMI, said: "May data pointed to a further divergence in retail sector performances at the country level, with marked expansions evident in Germany and France. The rate of growth in the latter - at a 67- month high - was particularly encouraging and provides further indication of a resurgence in the French economy. On the contrary, monthly sales in Italy continued to fall. Overall, the data paint a positive picture of the euro area retail sector. However, a sharp fall in gross margins suggests the business climate remains challenging."