UK retail sales astonishing strong – ING

By FXStreet FXStreet (Delhi) – James Knightley, Research Analyst at ING, notes that the UK retail sales growth in September is astonishingly strong, rising 1.7%MoM excluding fuel and 1.9%MoM including fuel – these are volume based figures.

Key Quotes

“Much of these increases reflected strong bounce-backs following a weather depressed August trading period, but there wasn’t such good news for clothing (-0.9%MoM) and “other stores” (-0.6%).”

“August’s growth was revised down six tenths, but even so this report is a very positive outcome (consensus was +0.4%). Indeed, YoY growth is now at 6.5%YoY so this bodes well for next week’s 3Q GDP number and provides a strong platform for 4Q growth.”

With employment and real wage growth rising strongly, the housing market looking strong and consumer confidence at very high levels, there is a growing likelihood that Ian McCafferty will be joined by one, maybe two more MPC members in voting for a rate hike at the November 5th MPC meeting. Moreover, with Mark Carney continuing to hint that he feels it will be a close call for him in terms of whether to vote for a hike around the turn of the year, market pricing of the first rate hike in late 2016/early 2017 …read more

Source:: FX Street