**As seen in Risk In The Week report 10/14/22, subscribe at cablefxmco.uk/reports
U.K. August retail sales declined by 5.4% Y/y, the dip was more than the median forecast of -3.7%. The month-over- month figure came in at -1.6%, almost three times below the forecast of -0.5%. August is the worst figure so far this year, also, 2022 has seen every single monthly retail sales prints contract, except for July. The softness was seen broadly as all majors sectors posted declines, this runs parallel to the current cost-of-living crisis in the U.K., inflation has risen to double-digit levels while high energy prices squeezes income. On a side note, BRC reported the U.K. LFL Sept. retail sales rising 1.8% Y/y, the total figure came in at 2.2%, up from the August print of 1.0%. The team at Bloomberg Economics says that the outlook for U.K. retail sales depends on the extent that consumers are willing to use their savings as cushion from the rise in cost-of-living, they also remind us that U.K. consumer confidence has fallen to record lows, even below the GFC and the Covid-19 crisis.
Comentários