17 Dec 2015
UK retail sales rockets as consumers' spending boom - ING
FXStreet (Delhi) – James Knightley, Research Analyst at ING, notes that the UK retail sales surged 1.7%MoM in November – well ahead of the 0.5%MoM consensus.
Key Quotes
“Including motor fuel sales also rose 1.7%MoM. It is a strong report throughout with food sales up 0.8%MoM, while clothing was up 2.8% and household goods were up 4.1%. Non-store retailing was up 1.9%. It is possible that some of the Black Friday discounting helped boost sales, but strong confidence, firm employment and rising real wage growth are clear fundamental supports.”
“While the BoE is relaxed about inflation now, the tightness in the labour market and the strength in consumer demand must raise some thoughts within the Bank of England’s MPC that it is only a matter of time before domestically generated inflation picks-up. Oil will continue to depress CPI in the near-term, but we struggle to see it falling much further.”
Key Quotes
“Including motor fuel sales also rose 1.7%MoM. It is a strong report throughout with food sales up 0.8%MoM, while clothing was up 2.8% and household goods were up 4.1%. Non-store retailing was up 1.9%. It is possible that some of the Black Friday discounting helped boost sales, but strong confidence, firm employment and rising real wage growth are clear fundamental supports.”
“While the BoE is relaxed about inflation now, the tightness in the labour market and the strength in consumer demand must raise some thoughts within the Bank of England’s MPC that it is only a matter of time before domestically generated inflation picks-up. Oil will continue to depress CPI in the near-term, but we struggle to see it falling much further.”