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 50.8 in January, from 53.0 in December. Sales were down on an annual basis after having been broadly unchanged in December.

Alex Gill, economist at IHS Markit which compiles the Eurozone Retail PMI, said: "The latest data paint a mixed picture as to the overall health of the eurozone retail sector. On the one hand, like-for-like sales and employment continued to rise, albeit at weaker rates than seen in December. On the other, sales remained down on an annual basis, gross margins were squeezed further while weaker than expected sales contributed to a build-up of inventories.