Euro retail sales on the rise

European retail sales rose for the first time in three months in March, according to Bloomberg. A gauge of retail sales in the 13-nation euro economy rose to a seasonally adjusted 53.4 after February's 49.8, a survey of more than 1,000 retail executives compiled for Bloomberg LP by London- based NTC Economics Ltd. Faster economic growth has spurred hiring, encouraging consumers to spend even in Germany, where retail sales had slumped after an increase in value-added tax on Jan. 1. German unemployment dropped to the lowest in almost six years in March.

``Today's indicator suggests that the economies of Germany and the euro region will clearly regain strength in the second quarter after a slowdown following the VAT increase,'' said Joerg Kraemer, chief economist at Commerzbank AG in Frankfurt. Retail sales ``will probably continue to show an expansion.''

Clothing and footwear led the increase in retail sales this month.``The last few months we can say that the market is improving,'' said Pablo Isla, chief executive officer of Inditex SA, Europe's largest clothing retailer, during a conference call with analysts on March 21. Fourth-quarter profit at the owner of the Zara, Springfield and Bershka chains rose 30 percent after Arteixo, Spain-based Inditex opened new stores in Spain, France and Italy.

For the Bloomberg retail indicator, NTC recruited a representative panel of retail companies in Germany, France and Italy, which together make up 80 percent of total euro-region retail sales by value. The panel includes large chain retailers as well as smaller stores.