UK high street gets much-needed boost from weather - ING
|James Smith, Developed Markets Economist at ING, notes that UK retail spending rose by 1.3% in May, driven predominantly by food and clothing.
Key Quotes
“We don’t think retailers are out of the woods just yet. May was a consistently warm month for much of the UK, particularly over the Bank holiday weekend at the start of the month, which encouraged consumers to head to the shops.”
“Consumer confidence has picked up slightly but remains low by historical standards, particularly when compared to Europe and the US, where in many cases shoppers are the most optimistic they’ve been since the early-2000s.”
“Alongside slower demand, retailers are grappling with higher business rates and increased wage costs.”
“So while our base case is for the Bank of England to hike rates in August, the challenges facing the retail sector are probably the biggest risk to this view.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.