FXstreet.com (Barcelona) - Retail sales have decreased in the United Kingdom for the second consecutive month in October, as the CBI distributive trades survey has posted the weakest reading since November 2006, in a sign that the effects of the interest rate hikes are starting to affect retail trade.
The rounded balance of retail sales has posted a +10 reading, two points lower than the +12 posted in September, and far below the long-term average of +18. The expectations index however remains positive for November with a reading of +15.
On the year, retail sales were up for 42% of the retailers surveyed, while only 33% reported yearly decreases. The three months average continues with its slowdown from +36% posted in May, down to +12% in October, the lowest result since last December.
By sectors, clothing retailers have reported sharp losses on the year while household goods have increased their yearly sales.