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Retail Sales in UK, Decrease Due To Rain and High Interest Rates
Poor weather and the high interest rates resulted to the decrease of the British retail sales at their lowest rates.
The BRC said clothing and footwear sales really suffer the biggest decline as the weather goes very bad after a warm April. The DIY and gardening sectors were also hit by the cold and rain.
Sales fall already to 1.8 percent last month, different forecasts for a 0.1 percent gain and more than reversing December’s 1.1 percent abrupt increase, according to the Office for National Statistics said.
The report suggests Britons are crimping to spend after the Bank of England raised borrowing costs four times. Signs of weakening consumer demand may give policy makers scope to leave rates unchanged at a six-year high of 5.5 percent when their two-day rate-setting meeting concludes June 7.
High interest rates enacted is already starting to weigh down on consumers and crimp their spending, thereby encouraging the MPC to hold on for at least one more month.
The effects of the recent high rate increases are now beginning to show up in these figures, the bank should think twice before putting up rates again in the near future.
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Posted on Jun-04-2007
