UK: Disappointing retail sales data – TDS

Analysts at TD Securities explain that the UK retail sales disappointed, falling 0.8% m/m in September versus the small contraction expected by consensus and small gain we were looking for.

Key Quotes

“This was driven largely by a 1.5% pullback in food store sales, but still leaves the quarter with a decent gain. As the weather effects most recently and World Cup effects prior fade from the data, it seems we are getting the the likely slowdown in UK activity data in H2 that we've been looking for.”

“Brexit uncertainty likely won't help here. EU Leaders overnight decided not to schedule a special November summit which could ostensibly approve a deal on the Withdrawal Agreement, but left the door open to holding that if negotiators come back and say they have worked out a deal.”