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    Consumer Demand Was Weak, While Retail Sales Rose In The Three Quarter.

    2016/10/23 22:14:00 24

    EuropeUKRetail Sales

    The data also showed that the monthly sales rate of core retail sales rose by 0% after the 9 quarter adjustment, and the increase was lower than the expected value of 0.2%. The former value was revised down from 0.3% to 0.1%. The annual sales rate of core retail sales in the United Kingdom rose 4% after the 9 quarter adjustment, with an increase of 4.4% below the expected value, and the former value increased from 5.9% to up 6.2%.

    After the June referendum triggered a plunge of more than 15% pounds, economists worried that this marks the beginning of a longer term trend of rising prices, which will erode consumer demand.

    This month, Britain's biggest retailer, Tesco and consumer goods manufacturer Unilever, had a disagreement, because the latter wanted to prevent their profits from falling due to the depreciation of the pound and demanded a 10% increase in the price of their products at Tesco.

    Three months from September to the United Kingdom

    retail

    Sales growth recorded the best performance since the end of 2014, but warm weather and higher prices hurt consumers' demand for seasonal garments in September.

    Specific data show that the monthly sales rate of 9 after the monthly adjustment is flat, the increase is lower than the expected 0.3%, the former value decreased from 0.2% to 0%, and the retail sales rate rose 4.1% in the UK after the 9 quarter adjustment, with an increase of 4.7% below the expected value, and the former value increased from 6.2 to 6.6%.

    However, in the third quarter, the retail sales quarter rate increased by 1.8%, the fastest growth since the fourth quarter of 2014, and the retail sales quarter rate increased by 1.1% in the two quarter.

    In addition, compared to a year ago, retail sales in the three quarter grew by 5.4%, the fastest growth since the fourth quarter of 2014.

    Breakdown data show that September clothing and

    footwear

    The largest drop in retail sales; higher prices and the exceptionally warm September weather in Britain were the cause of the decline in retail sales of clothing and footwear.

    September

    clothing

    The price increase was the largest in years, while the decline in store prices was the smallest in more than two years.

    ONS said that since the June referendum off Europe, consumer sentiment has remained stable, and the retail sales department will make steady contributions to the third quarter of the UK's economic growth.

    The third quarter retail sales growth will contribute 0.1 percentage points to GDP growth in the third quarter.

    Davies Davies, a ONS statistician, said: "the basic trend of retail sales data shows that British consumer confidence has remained stable since the June referendum in June."

    Concerns about rising prices were the highest in the past two years, according to data released by ONS on Tuesday (October 18th), which showed that inflation in Britain was the fastest since June 2014.

    Travis Perkins Perkins, the largest building material supplier in the UK, said on Wednesday (October 19th) that the UK's weaker demand after Europe will cause its profit margins to fall, while apparel chains ASOS, Next and Marks & Spencer are struggling to improve sales.

    In the second quarter, the UK economy grew by 0.7%, but the Bank of England expects the third quarter economic growth to slow to 0.3%, which is much better than most economists' expectations after the EU referendum. And no economist now expects the Bank of England to cut interest rates again in next month's meeting.


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