UK DATA: Dec Retail Sales +0.6% m/m; +2.6% y/y; median 0.6% m/m;2.4% y/y
–Dec Retail Sales ex fuel +0.6% m/m; +1.7% y/y; median 0.7% m/m;1.7%y/y
————————————————————————
Retail sales volumes rose as expected in Dec with volumes rising
1.1% on the quarter in Q4, the strongest 3m/3m growth since Aug 2010. It
was the strongest Q4 quarterly gain since 2003. The data showed, though,
that retailers cut prices at the fastest pace for over a year with the
sales deflator down 0.9% on the month ex-fuel. This positive quarterly
rise will add to GDP, although retail accounts for around only one-third
of total household spending which has been squeezed sharply over the
past year. Most sectors saw sales volumes rising during the month with
sales at ‘other’ stores rising 2.5%, helped by strong sales of computers
and phones. Textile, clothing and footwear volumes rose 1.8% on the
month, while non-specialised (department) store sales rose 1.2%.