UK DATA: Jan Retail Sales +0.9% m/m; +2.0% y/y; median -0.4% m/m;0.4% yy
–Jan Retail Sales ex auto fuel +1.2% m/m; +1.9% y/y; median -0.4; 0.0
————————————————————————
Retail sales rocketed 0.9% m/m in Jan, confounding expectations for
a fall. Ex fuel the rise was an even stronger 1.2%. The figures add to
other recent economic data which suggests the economy made a decent
start to Q1 in contrast to some gloomy forecasts. While the data can be
erratic, these figures are likely to increase expectations that we may
well have seen the last bout of QE from the Bank of England. Growth in
January was driven by predominantly non-food stores sales volumes, which
rose 2.2% m/m. Food store sales were down 0.3% m/m. Within, non-food
there was very strong growth in other stores sales, with volumes up 5.9%
m/m, helped by sales of sporting equipment. Household goods sales rose
4.8% on the month, boosted by furniture sales, and posted the first
positive annual growth since January 2010 of 1.3%.