LONDON: British retail sales rose in September as Britons bought the new winter clothing collections and school uniforms, data showed, boosting chances that consumers may keep the recovery on track.
Sales volumes including automotive fuel rose 0.6 percent last month, more than making up for a 0.1 percent dip in August, the Office for National Statistics said on Thursday. Economists had forecast an increase of 0.4 percent on the month.
Clothing and footwear sales rose 2.0 percent on the month.
Between July and September, retail sales were 1.0 percent higher than in the previous three months, posting the strongest quarterly rise since the second quarter of 2010.
Sterling rose and UK gilt futures turned negative after the data, which added to views that Britain posted solid growth in the third quarter and exited recession.
At the same time the robust sales together with a jump in retail price inflation may dampen the Bank of England's enthusiasm for more monetary policy stimulus.
"Today's retail sales report is relatively encouraging as it suggests that consumption was up a touch in Q3," said Newedge Strategy economist Annalisa Piazza.
Some policymakers may conclude that more stimulus was not needed at the current stage, she said, adding that the next sets of surveys and data would be crucial.
"Some strength in business confidence - for example - might convince the Monetary Policy Committee that no action is needed for now," Piazza said.
Retail sales were 2.5 percent higher than in September 2011, also a stronger increase than forecast.
Comments
Comments are closed.