From Germany’s fear to France’s weakness: fashion sales in Europe shake
According to the macroeconomic indicators about the evolution of the economy, industrial production, employment or exports are expected to have a rough end of the year.
Europe slows down fashion consumption. The biggest apparel, footwear and accessories markets have weakened its growth in the past few months at the same time the ghost of the recession came back to Europe. Retail in the sector faces the last period of the year after uncertainty and highs and low in the beginning of 2019.
Germany, the biggest fashion market in Europe, shrunk 1.9% its fashion sales in July, compared to the previous month. The sector could keep the rise of the previous month and came back to the drops that it also had in April and May, when fashion sale showed a downfall in the country of % and 3.6%, respectively.
Macroeconomic forecast for the German market are not positive. Despite being one of the European territories with more political stability, the country is expected to enter in technical recession in the third quarter of the year. The drop of 0.6% in July in its industrial production points in that direction.
Fashion sales in United Kingdom, second biggest European market in the sector, escapes for now the political agitation of the country, and adds two consecutive months in the rise. However, the data available from July, a rise of 1.7%, is on the low compared to the rise of Junewhen fashion sales increased 1.7% according to the Office for National Statistic (ONS).
Just as the German economy, the British also shrinks. During the second quarter of 2019, the GNP of the country dropped 0.2%, due in part to the fear of the possible exit of the European Union without a deal. For now, retail in the country continue increasing, ending July 2.9% up. However, the rise was more moderate than in June, when the rise was 3.2%.
France, one of the biggest fashion markets of Europe is where fashion sales are showing the worst performance.In April, last available data, sales in the sector shrunk 6.7%, being the biggest drop in the last seven months. France is the third biggest fashion market in the continent and now adds seven month of drops in the sector.
Even if the French economy hasn't dropped yetm, like the German or British, its growing pace is slow
Unlike Germany and Britain, the French economy hasn’t dropped yet, even if its growing pace is slow. During the second quarter of the year the GNP of the country increased 0.2%, due in part because of the slow consumption in the French households. However, total retail sales in the county increased 2.7%.
Italy, that doesn’t escape the political agitation either, ends a first half of the year with highs and lows in the fashion evolution. In July, retail sales in the sector increased 1.7%, but the rise was weaker than the previous month, when it was 3.2%, according to the Istituto Nazionale di Statistica (Istat). Italian economy is also on the edge of recession, after shrinking 0.1% in the first half of the year. Forecast state that the GNP of the country will end the year in zero.
Spain, on the other hand, has a better economic forecast than the rest of the European economies even if it it’s in the middle of political uncertainty due to the lack of a stable government. Fashion sales in the country dropped 0.2% in July and grew a shy 0.3% in August.
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