The UK's retail sector looking stronger still this September. It's a stark contrast to yesterday's confirmation that real wages are still declining.
In the month of September retail sales grew by 0.6 per cent, against economist forecasts of a 0.4 per cent rise. Last month retail sales fell by 0.9 per cent.
No huge reaction in the pound against the dollar though - the earlier gains came from dollar weakness as Dagong downgraded the US.
On a quarterly basis, this is the biggest rise the sector has seen since March 2008.
Retail sales rose 2.2 by per cent in the year to September, from 2.1 per cent prior. Analysts had been expecting no change.
Excluding fuel, retail sales rose by 0.7 percent in September, from a 0.8 per cent drop last month (revised from -1.0 per cent).
Non-food stores and non-store retailing both saw increases in September, of 3.6 per cent and 19.1 per cent respectively. Food stores and petrol stations (including supermarket petrol stations) saw falls in the quantity bought of 0.6 per cent and 2.4 per cent respectively.
Risks to retail are simple. Wage growth (or the lack thereof) cannot a sustainable recovery make. PMIs and job data also suggest that.— World First (@World_First) October 17, 2013