Retail sales volumes were stagnant on the month to offer an annual increase of only 0.9%, the Office for National Data said on Thursday – below economists’ predictions for both month-to-month and annual sales increase.
The numbers follow a suprise drop in retail revenue in Oct and advise underlying weakness in much of Britain’s providers sector, increasing the chances the market will shrink in the 4th quarter, something the Bank of England views as likely.
and#34;Consumers are still keeping their powder dry,and#34; said Peter Dixon, UK economist at Commerzbank. and#34;Fourth-quarter action generally goes to become pretty bad… A negative (GDP) figure can’t be ruled out,and#34; he added.
October providers data due on Friday gives the first apparent view of the state of the biggest sector of Britain’s industry in the closing quarter of
2012. Britain came out from its 2nd recession since the fiscal crisis within the next quarter of the season, and headwinds are confronted by the market from government spending cuts, the euro zone crisis and fairly high inflation.
The one light spot for retail sales was in family products stores, where volumes increased by 3.8 percent on the month, the best leap after February 2010. The ONS said it was pushed by electricals such as Apple’s (AAPL.O) new iPad Miniature tablet computer.
Consumer spending, which drives about two thirds of British GDP, has still not gone back to to the ranges seen prior to the 2008 – 09 downturn, as wage increase have been outpaced by stubborn inflation.
Several well – recognized British high – street stores have ceased trading this yr, including JJB Sports, Clinton Cards and Game Group. On Tuesday Its doors are closed by the latest failure, 235 – store electric chain Comet,.
The important Christmas trading period got off to a poor beginning, with retail sales growing less than predicted in the first half of December, according to a survey from the Confederation of British Industry.