News Worms
News Worms


United Kingdom retail sales surge ahead of forecasts despite pay squeeze

United Kingdom retail sales surge ahead of forecasts despite pay squeeze

Retail sales jumped by 2.3 per cent in April, well ahead of expectations, reflecting good weather but also suggesting the United Kingdom consumer might be more resilient than feared.

"UK retail sales rose by 4.0% year on year in April, by 2.3% month on month, and in the three months to April they rose by 0.3% compared to the previous 3-month period".

Observations suggest that the 1.5-percent decline in sales over the first quarter is effectively offset by April's massive gains, meaning that even if retail halts at zero over the next two months (which is unlikely), there will still be quarter-on-quarter growth now.

The UK gilts rallied Thursday as investors largely shrugged off the wider-than-expected rise in the country's retail sales for the month of April.

The pound jumped 0.5 per cent in the wake of the release from the Office for National Statistics, pushing through the $1.3 mark to $1.3036, as traders adjusted their bets on an earlier interest rate rise from the Bank of England.

The figures also showed an increase in average weekly earnings, with a rise of 2.1 per cent, whilst several sectors also saw an increase in the number of jobs.

A recovery in sterling's value - while still way below its pre-referendum level above $1.50 - could help limit the threat to households from inflation in the months ahead.

Economists expect it to climb above 3%.

"The theory went that squeezed household budgets would likely hit retailers in the pocket too". This was more than double the 1.0% forecast and reversed the 1.4% decline in March when sales recorded their biggest fall in seven years.

Accelerating inflation and meager wage growth weighed down heavily on consumer spending in the first three months of the year, causing the whole economy to slow significantly, preliminary figures showed.

There was a positive impact on sales from the late Easter this year and the ONS also cited favourable weather conditions as providing a boost to sales.

"April's surge in retail sales was more than enough to compensate for the first quarter's weakness, lifting the level of sales to the highest since last November".

Analysts had expected April's reading to increase by just 1.0%.

follow

editors' picks

May 19, 2017
Manning has attire discretion under Army status
In the NBC News article, another of Manning's attorneys discussed the freedom Chelsea now has to express her true gender identity. Manning transitioned from male to female while she was in prison for giving classified materials to the website WikiLeaks.

May 19, 2017
Stars Snubbed For Germany's Confed Cup Squad
Loew is resting stars Sami Khedira, Mesut Oezil, Toni Kroos, Mats Hummels, Thomas Mueller and Jerome Boateng for the June 17-July 2 tournament.

May 18, 2017
Sharapova says she'll 'rise up again' after French Open snub
"He said", You get a wild card only when you return from injury not when you are making comeback from doping suspension". TENNIS legend Maria Sharapova has shocked the sporting world after failing a drugs test at the Australian Open .

May 18, 2017
Georgia executes man who killed elderly neighbor in 1992
Ledford did not accept a final prayer and recorded a final statement, the Georgia Department of Corrections said in a statement. Ledford told police he had gone to Johnston's home on January 31, 1992, to ask for a ride to the grocery store.

May 18, 2017
Price Target Analysis Banco Bradesco S.A. (BBD)
Banco Bradesco S.A. ( BBD ) stock price tumbled -3.09% to finalize at $10.04 throughout previous buying and selling session. This is the price at which the trader or investor wants to exit his existing position so he can realize the most reward.

May 18, 2017
Supreme Court rejects appeal over NC voter ID law
The Texas case is making its way through the lower courts and could be the high court's next opportunity to weigh in. In its ruling, the appeals court said the law was intentionally created to discriminate against black people.

May 18, 2017
Australian senator breastfeeds baby on floor of Parliament
LSenator Larissa Waters is the first woman in the history of Australia to have breastfed her child during a meeting of Parliament. Let's hope we see many more female politicians feel encouraged to breastfeed their babies whenever-and wherever-they see fit.

May 18, 2017
FCC website hit by attacks after 'net neutrality' proposal
Even more concerning, however, is that the names and addresses attached to those comments may not belong to whoever filed them. However, the allegedly suspect comments favoring net neutrality are vastly outnumbered by those in opposition.

May 18, 2017
Their view: Trump can't be trusted with sensitive information
But the swirling questions about his conduct were clearly on his mind when he told graduates at the U.S. Later Tuesday, Trump told reporters he'd had a "very, very successful meeting" with Lavrov.

May 18, 2017
Microsoft says cyberattack should be wake up call for governments
Experts and governments alike warn against ceding to the demands and Wainwright said few victims so far had been paying up. But U.K. hospitals, Chinese universities and global firms like Fedex also reported they had come under assault.