UK DATA: Oct Retail Sales -0.8% m/m; +0.6% y/y; median -0.1% m/m;1.6% yy
-Oct Retail Sales ex-fuel -0.7% m/m; +1.1% y/y; median -0.1% m/m; 2% y/y
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Retail sales fell by far more than expected in Oct due to a drop in
sales at food and clothing and footwear stores. While the sharp monthly
fall in clothing and footwear of 2.3% may have been exagerrated
following a timing related boost in September from school uniform sales,
declines were seen across most other categories suggesting general
weakness. On a trend basis underlying sales are pretty much flat against
a backdrop of a squeeze on households’ incomes. This will only add
to the gloomy feel left following the publication of the BOE’s
Inflation Report yesterday.