Britain's October Temperature Rises, Demand For Shoes And Clothing Slows Down

The retail sales association of the United Kingdom announced that the BRC retail sales in October increased by 1% over the same period, while the overall retail sales increased by 3% over the same period, hitting 11 month lows.

(BritishRetailConsortium) in November 6th, the data released by the British Retail Association (6) showed that the retail sales of BRC in October increased by 1% over the same period in October, reaching a 11 month low, which is lower than the 2.2% expected by economists.

Data also showed that the overall retail sales in the UK increased by 3% in October, and also in the 06 year low of November.

Hawkins, President of BRC, said: "the above results reflect a downward trend in sales growth in the UK, and we have already anticipated this because of higher mortgage interest rates and other pressures on household income", said KevinHawkins.

He added, "the above results also show that many retailers face the challenge of trading status, and this challenge may still exist before interest rates fall and consumer confidence rises."

Mr BRC said that the temperature in October had a negative effect on clothing and footwear sales than before. Furniture and household goods sales also slowed down during the same period. "Rising interest rates, slowing the real estate market and financial worries after the banking crisis have all compromised consumer confidence, and consumers are becoming more cautious in big purchases".

(BankofEngland) MonetaryPolicyCommittee (MPC) increased interest rates 5 times in 06 years from August to July 07, after which the benchmark interest rate remained unchanged at 6 years.

The 8 meeting of the Bank of England is expected to maintain the benchmark interest rate unchanged at 5.75%. Most economists expect the Bank of England to cut interest rates in the first half of 08 years.

Continued weakness in consumer confidence will increase the likelihood of the Bank of England raising interest rates earlier.

The number of shoppers in the UK declined in October for the third consecutive month, and RetailFootfallIndex data showed that the number of shoppers in October to retail outlets decreased by 2.4% in the year to year.

(BRC) the above BRC retail sales survey was conducted from September 30th to October 27th.