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Retail Sales Growth Slows Sharply In June - Brc

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http://uk.reuters.com/article/2014/07/15/uk-britain-retail-brc-idUKKBN0FJ2O920140715

British retail sales growth slowed in June to one of its weakest rates in three years, possibly in response to fears of higher interest rates, industry figures showed on Tuesday, adding to recent lacklustre economic data.

The British Retail Consortium said total retail spending in June was just 0.6 percent higher than a year before, the lowest growth rate since May 2011 if annual volatility caused by the timing of Easter is excluded.

Consumer spending has been a major driver of Britain's unexpectedly strong economic recovery over the past year, but in May the Bank of England said it expected the rate of growth to fall slightly in the second half of 2014.

Industrial output and the construction sector were weak in May, and services activity growth slowed to a four-month low in June.

The BRC said second-quarter sales growth was robust overall, rising by 2.6 percent, the fastest growth rate for a calendar quarter since the third quarter of last year.

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"Concern over a potential rise in interest rates is having a dampening effect on retail sales," said David McCorquodale, head of retail at accountants KPMG, who sponsor the survey.

The new economic policy is to keep rates low and merely hint an increases to have the desired effect.... I don't know why we didn't have this monetary policy years ago cheap money and just a hint of a rate rise....

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A separate sales report this morning:

Online retail sales suffer biggest decline in six years

Online retail sales suffered their steepest month-on-month decline for the past six years in June, triggered by uncertainty around interest rates and the higher temperatures encouraging people to go outdoors.

Etail trade body IMRG and Capgemini’s e-Retail Sales Index said that retail sales recorded a 5% month-on-month decline in June - the steepest drop between May and June since 2008.

Year-on-year online retail sales increased 9% in June – the lowest annual growth since July last year.

http://www.retail-week.com/multichannel/online-retail-sales-suffer-biggest-decline-in-six-years/5062192.article

A weak inflation print this morning (CPI release is at 9.30 am) and the expectations of a rate increase any time this year could well be killed.

Annual inflation as measured by CPI is forecast to have increased from 1.5% in May to 1.6% in June.

Also we've got the labour market report tomorrow. Partially due to technical factors, average annual wage growth including bonuses is expected to DROP from 0.7% to 0.5%. If the result is as expected, this is likely to make headlines once again re falling living standards.

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Sales fall because people are skint.

Has anyone blamed the world cup yet?

But England were out almost before it got started :D

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Sales fall because people are skint.

Has anyone blamed the world cup yet?

From the FT (re the weak BRC sales report):

"Adding that England’s early exit from the football World Cup had exacerbated grocers’ problems, Mr McCorquodale said it would be “challenging” for retailers to achieve good like-for-like sales during the next few months as Andy Murray’s Wimbledon victory, exceptionably good weather and the arrival of a royal baby all boosted sales last year."

UK shop sales slow unexpectedly in June

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A separate sales report this morning:

http://www.retail-week.com/multichannel/online-retail-sales-suffer-biggest-decline-in-six-years/5062192.article

A weak inflation print this morning (CPI release is at 9.30 am) and the expectations of a rate increase any time this year could well be killed.

Annual inflation as measured by CPI is forecast to have increased from 1.5% in May to 1.6% in June.

Also we've got the labour market report tomorrow. Partially due to technical factors, average annual wage growth including bonuses is expected to DROP from 0.7% to 0.5%. If the result is as expected, this is likely to make headlines once again re falling living standards.

How are the tourist numbers doing?

With GBP at 1.70 USD and 1.25 Euro it might not be helping retail sales from foreigners?

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Sales fall because people are skint.

Has anyone blamed the world cup yet?

Sales fall because of an excess of discretionery imported stuff.....sales fall because things that have to be bought savings are required to buy them......sales fall because the way and means to buy the stuff in rising in price, fuel, parking, travel, postage etc....sales are falling because people can't afford to go out and are buying what they need at a cheaper price via reaserch....sales are falling because buying with debt means the cost of what is wanted/needed becomes more costly to purchase (two for the price of one)......there are many reasons why splashing the cash with abundance and no concerns is now not such a clever or shrewd move to make. ;)

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Sales fall because people are skint.

Has anyone blamed the world cup yet?

.....sales fall because of the global cup.....the cup of plenty floweth over for the few, the rest are either not ready, willing or able to buy or sell. ;)

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"Concern over a potential rise in interest rates is having a dampening effect on retail sales," said David McCorquodale

Thats funny. When it comes to housing, these same people say people are buying to get in before rates rise.

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I no longer go out for a drink on a whim compared to 6 years ago. At £3.50 a pint I only go if there is a band or my Ukulele lesson is on. If it goes up again, that’s it for me I will be home brewing. Who would have thought we would reach a point where a min wage worker needs to work 1 hour for a pint and a packet of crisps but here we are! Refuse to spend money at the cinema since it went over the £8 mark. I wear walking shoes to work as they last over a year. Food wise I eat a lot more rice, the other day I bought a single tomato, rather than buying the multipack bland ones. If they think sales are dropping now wait till the consumer works out they do not need half the stuff they buy at the moment. That point has to be getting close now!

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I no longer go out for a drink on a whim compared to 6 years ago. At £3.50 a pint I only go if there is a band or my Ukulele lesson is on. If it goes up again, that’s it for me I will be home brewing. Who would have thought we would reach a point where a min wage worker needs to work 1 hour for a pint and a packet of crisps but here we are! Refuse to spend money at the cinema since it went over the £8 mark. I wear walking shoes to work as they last over a year. Food wise I eat a lot more rice, the other day I bought a single tomato, rather than buying the multipack bland ones. If they think sales are dropping now wait till the consumer works out they do not need half the stuff they buy at the moment. That point has to be getting close now!

Just you wait until they devalue the Pound by another 20% to pay for the London Bubble.

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I no longer go out for a drink on a whim compared to 6 years ago. At £3.50 a pint I only go if there is a band or my Ukulele lesson is on. If it goes up again, that’s it for me I will be home brewing. Who would have thought we would reach a point where a min wage worker needs to work 1 hour for a pint and a packet of crisps but here we are!

Ah, the HPC thrifty, cutting down to four strings! :blink:;)

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Last Saturday, still on iPlayer (haven't watched it myself yet). The same chap make "The Men who made us fat" the other year.


DOCUMENTARY: The Men Who Made Us Spend
On: BBC 2 (102)
Date: Saturday 12th July 2014 (Already shown)
Time: 21:00 to 22:00 (1 hour long)

Jacques Peretti investigates consumerism and confronts some of the men behind bestselling products and sales strategies in this three part series. In this episode, Jacques reveals how the wheel of consumerism is driven by product lifespans and delves into the history of planned obsolescence - of products being 'made to break'. During his investigation, Jacques explains how consumers moved from replacing broken products with new ones to the contemporary attitudes of desiring new products for the sake of fashion and aspiration.
(Editor's Choice, Stereo, Widescreen, Subtitles, Audio Described)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Excerpt taken from DigiGuide - the world's best TV guide available from http://www.getdigiguide.tv/?p=1&r=18398

Copyright © GipsyMedia Limited.

And the next episode:


DOCUMENTARY: The Men Who Made Us Spend
On: BBC 2 (102)
Date: Saturday 19th July 2014 (starting in 3 days)
Time: 21:00 to 22:00 (1 hour long)

Jacques Peretti investigates consumerism and confronts some of the men behind bestselling products and sales strategies in this three part series. In this episode, Jacques reveals how fear remains one of the most powerful drivers of consumer spending. At a neuroscience lab, a consumer psychologist explains how the human brain is much more responsive to negative stimuli than positive. Other experts have turned this knowledge into an art form, helping manufacturers make billions from our anxieties andd insecurities. Jacques visits some of these experts, including French anthropologist Clotaire Rapaille, whose insights have helped companies sell everything from SUVs to cigarettes, and multimillionarie marketer Rohan Oza, who helped propel VitaminWater into the soft drink stratosphere. Also this episode, Jacques visits a conference in Las Vegas where he mingles with the doctors and businessmen who are targeting one of the most deep-seated fears, the fear of age and decline.
(Stereo, Widescreen, Subtitles, Audio Described)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Excerpt taken from DigiGuide - the world's best TV guide available from http://www.getdigiguide.tv/?p=1&r=18398

Copyright © GipsyMedia Limited.

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UK retail sales growth falls to eight-month low, public finances weak

By Andy Bruce and Li-mei Hoang

LONDON Thu Aug 21, 2014 11:24am BST

..Monthly growth in retail sales volumes unexpectedly fell to just 0.1 percent in July, down from 0.2 percent in June and bucking forecasts for a rise to 0.4 percent.

Annual growth in the volume of goods sold dropped to 2.6 percent, the weakest since November last year and again below forecast, despite prices falling at their fastest rate in almost five years, giving consumers more for their money.

..Britain's consumers have been the main driver of the country's economic recovery which began last year, helped in part by low inflation that has eased the pressure on their spending power.

Wage growth, however, remains very weak and increased spending has been funded in part by households cutting back on how much they save.

Prices in stores fell 0.9 percent on the year after being flat in June, the biggest decline since August 2009, the ONS said. However household budgets are squeezed by higher prices for other goods and services, with the broader consumer price inflation measure rising by 1.6 percent in July.

..FINANCES STILL WEAK

The ONS said public sector finances, excluding financial sector interventions, showed a deficit of 239 million pounds compared with a deficit 1.047 billion in July 2013. Economists polled by Reuters had expected a small surplus of 50 million pounds, as July normally sees big inflows of tax revenue.

"The government borrowing numbers are far more disappointing (than the retail sales data)," said ING economist James Knightley, adding that they will make the government's full-year borrowing goals hard to meet.

http://uk.reuters.com/article/2014/08/21/uk-britain-economy-idUKKBN0GL0PA20140821

Been trying to find some info about ISA savings, after shock withdrawals late 2013 - and again, Spring 14. I'm not entirely sure of where/why this ISA money is going.. hopefully not to fund BTLs at "they didn't know what they were doing" +30% excuses of the past, prices.

http://news.sky.com/story/1274782/britons-draining-savings-to-stay-afloat

The amount UK households have stored away in cash ISAs fell in April at the fastest monthly rate since the accounts were introduced in 1999, according to the Bank of England. Customers' deposits dropped by £2.8bn or 1.2% to £226bn during the month, its statistics showed.

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..FINANCES STILL WEAK

The ONS said public sector finances, excluding financial sector interventions, showed a deficit of 239 million pounds compared with a deficit 1.047 billion in July 2013. Economists polled by Reuters had expected a small surplus of 50 million pounds, as July normally sees big inflows of tax revenue.

"The government borrowing numbers are far more disappointing (than the retail sales data)," said ING economist James Knightley, adding that they will make the government's full-year borrowing goals hard to meet.

http://uk.reuters.co...N0GL0PA20140821

Keep spending, Comrade Osborne.

potemkin-village.jpg

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