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Deckard

U.k. Retail Sales Jump By 1.2% In June On Clothing, Food

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http://www.bloomberg.com/apps/news?pid=206...id=aTYeV9p.j.MU

July 23 (Bloomberg) -- U.K. retail sales jumped four times as much as economists forecast in June as signs of improvement in the economy and discounts encouraged shoppers to buy more food and clothing.

Sales climbed 1.2 percent from May, when they dropped 0.9 percent, the Office for National Statistics said today in London. Economists predicted a 0.3 percent increase, the median of 28 forecasts in a Bloomberg News survey shows. From a year earlier, sales rose 2.9%.

William Morrison Supermarkets Plc, one of the four main U.K food retailers, said this week that earnings will beat its forecast, helped by discounts and promotions. Britain's housing- market slump has shown signs of easing, and Bank of England Deputy Governor Charles Bean says the economy may now have stopped contracting.

``Consumer spending may be bottoming out and confidence has made some sort of recovery,'' Philip Shaw, chief economist at Investec Securities in London, said before the report. ``It's possible that we will see a more marked strengthening in retail sales going forward.''

Sales at food stores increased by 0.7 percent, while they rose 1.6 percent at non-food retailers, the statistics office said. Textile, clothing and footwear shops saw sales increase for the first time in three months, by 4.7 percent.

£ up on the news

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in other news, people are spending more money on essentials such as food and clothes because food and clothes are getting more expensive.

Are these increases inflation-adjusted or not?

Peter.

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No-one appears to look ahead more than a month or two.

There were plenty of people shopping on my last visit to the UK (June).

The governments policies of QE and low interest rates is successfully concealing the problems from all except those who have lost their jobs as far as I can see.

Until there are higher interest rates, and this will only happen when the inflation and the IMF force it on them later this year, this "phoney war" will continue.

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The full effect of the rising unemployment has not been felt in my opinion. A lot of jobs have

been lost since then and that will affect spending in the coming months.

"Rising joblessness may keep a lid on spending. Bean said this week that unemployment will probably keep increasing, according to the Bristol Evening Post. The number of jobless people rose to 2.38 million in the quarter through May and the British Chambers of Commerce said this month that it may reach 3.2 million by the middle of next year"

Consumer spending is not coming from higher wages or MEW so it must be coming from savings.

The last thing we need is lower savings we need much higher savings as a nation.

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There's an odd situation happening here, because in my reasonably prosperous East Midlands town, there are still plenty of people around when I go into the town centre, and yet individual shops keep popping out of existence at a quite alarming rate.

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How do you know if the £ was moved by this, mortgage approvals, or indeed a butterfly in Brazil?

i would have thought the dollar and euronews is what moves the £, the third choice of this list of three.

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How do you know if the £ was moved by this, mortgage approvals, or indeed a butterfly in Brazil?

:lol: I don't - no one does.

However, I reckon the impact of the better-than-expected UK figs is more likely to have contributed than your Brazilian winged friend ;)

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inflation is negative...unless you buy food where its 6%+

figures schmigures.

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:lol: I don't - no one does.

However, I reckon the impact of the better-than-expected UK figs is more likely to have contributed than your Brazilian winged friend ;)

Normally this would imply rising interest rates.

Surely that's completely out the window ATM?

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Are these increases inflation-adjusted or not?

Peter.

I suspect they are adjusted by the general RPI or CPI inflation figure, not the inflation rate that applies to food and clothing. So yes, as Food in particular is rising much faster than the general inflation rate, it will appear as growth even when it is not.

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Well my own guess is that its tourists in London causing most of the rise - seems to be absolutely chock full of them at the moment, taking advantage of the strong €.

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