UK retail sales rise 0.3% in December

stueyhants

http://news.bbc.co.uk/1/hi/business/8474122.stm


UK retail sales rose by just 0.3% between November and December according to official figures. The rise in sales volumes in the run-up to Christmas was lower than expected, with analysts having predicted a rise of more than 1%
.....

Economist said the figures, released by the Office for National Statistics, were disappointing given the positive reports from retailers over the festive period.


Given that VAT was due to rise you would have thought sales would have been higher, so much for the consumer lead recovery

Really2

stueyhants wrote: »

Given that VAT was due to rise you would have thought sales would have been higher, so much for the consumer lead recovery

As a result retail sales by value were stronger in December, rising by 0.9% compared with November.
Sales by value were up 3.6% from December 2008.

So turnover took it to nearly the forecast anyway.

But was it not bad weather in the last 2 weeks of Dec I wonder if they went elsewhere to shop instead of risking the snow and ice.

Separate figures released today showed that people have been increasingly turning to the internet for their Christmas shopping.
Figures from IMRG Capgemini showed that online retail sales hit £5.46bn in December, an increase of 17% compared with the same month the previous year and up 3.8% from November.

So perhaps overall not that bad.

Generali

I'm the retail sales figures include online spending under the category 'non-store retailing'. It accounts for a much smaller proportion of spending than you'd imagine though: plenty of scope for growth.

lemonjelly

I can't help but feel though that the scope for consumer spending isn't great.

To me, we'll see VAT get added back on. However my bigger concern is that essentials (food, energy bills - especially with the recent & forecast incoming cold spell), petrol (on guard really2!:)) & other essentials will start to take the majority of households income.

In addition, whilst unemployment hasn't rocketed, it seems that those who were out of work have moved into lower paid/part time work.

o there will be less to spend on "desireables".

I dunno. I'm not an out & out doom-mongerer, but I do feel that households are gonna be squeezed more. Especially if VAT rises further.

Plus pay increases aren't keeping up with inflation...

Really2

lemonjelly wrote: »

petrol (on guard really2!:)) .

Get a diesel and stop moaning.:D

TBH I have hardly noticed any of the recent inflation. (And I say that truthfully)

I suppose if I had a petrol car etc I would have seen it more.

lemonjelly

Really2 wrote: »

Get a diesel and stop moaning.:D

TBH I have hardly noticed any of the recent inflation. (And I say that truthfully)

I suppose if I had a petrol car etc I would have seen it more.

:rotfl:

I've noticed!:eek:

I wonder if it is only a matter of time until others notice...

Really2

lemonjelly wrote: »

:rotfl:

I've noticed!:eek:

I wonder if it is only a matter of time until others notice...

Interestingly oil is back nearly to mid Octobers price in $ converted to GBP I dare say it is less already.

As I have said all this inflation will be out of the window when the VAT and the Oil Lows have worked out.
But if oil keeps dropping to $70 that could now be June.

lemonjelly

Really2 wrote: »

Interestingly oil is back nearly to mid Octobers price in $ converted to GBP I dare say it is less already.

As I have said all this inflation will be out of the window when the VAT and the Oil Lows have worked out.
But if oil keeps dropping to $70 that could now be June.

I hope so!
Petrol is now around 109.9 & upwards around here.

Quite a jump from 102 or 103.9 which it was up to NYE.

Quite a drain on me hard earned!:cool:

Can't see the petrol prices falling much though - doesn't an extra 2p get added on in April? Best we can hope for is supermarkets absorb the rise (for a week or so, like they normally do).

I think my point is more along "disposable incomes are falling", as it seems there are inflationary pressures, but wages are frozen at best.

Really2

lemonjelly wrote: »

I think my point is more along "disposable incomes are falling", as it seems there are inflationary pressures, but wages are frozen at best.

I think wages and inflation will both be fairly limp 2nd half of this year.

I have booked myself in for a rise though

lemonjelly

Really2 wrote: »

I think wages and inflation will both be fairly limp 2nd half of this year.

I have booked myself in for a rise though

If only I had such control on my destiny!

Saving grace is that my pay review doesn't happen til september anyway. If it's all rosier then, perhaps there is a little chance?

Really2

lemonjelly wrote: »

If only I had such control on my destiny!

Saving grace is that my pay review doesn't happen til september anyway. If it's all rosier then, perhaps there is a little chance?

I think people with a pay review would be better off having a review sooner rather than later this year. (providing the use an inflation index for the offer)