UK retail sales roared higher in October, as consumers stocked up ahead of national lockdowns
UKretail sales rose 1.2% in October from September, beating expectations, the Office for National Statistics said.
- This was the sixth consecutive month of growth that brought
consumerspending back to pre-pandemic levels, the ONS said.
retailsales increased by 5.8%, as consumers started spending for Christmas shopping earlier than usual, ahead of a national lockdown that came into force weeks later.
UK retail sales rose for a sixth month in October, smashing expectations, as some consumers stocked up ahead of lockdowns and others started buying for Christmas, encouraged by stores holding early sales, the Office For National Statistics (ONS) said on Friday.
The ONS said retail sales rose by 1.2% in October compared with September, marking their sixth month of expansion. The pace was slower than September's 1.4% increase, but well above expectations for a reading of 0%.As lockdowns took effect in parts of the country, such as Wales, along with a number of large English cities, closing non-essential stores, as well as pubs and restaurants, and consumers prepared for wider restrictions in the weeks ahead, online shopping witnessed a rise of 52.8%.
The UK has been one of the worst affected by the pandemic in Europe. The death rate in Britain is the highest in the region, with over 46,000 fatalities, while the rate of infection is nearing the peaks of the spring.
In October, household goods stores rose by 3.2%, non-store retailing at 6.4%, and department stores at 3.1%, helping the overall monthly increase in retail sales.Retail sales volumes increased by 8.9% between August and October despite lockdown restrictions coming into place across large parts of the country in October, including major cities such as Manchester, according to the agency. "The retail sector is likely to be better prepared for this lockdown than it was in March," ING economist James Smith said.
Although most of the country will spend November - a crucial month for consumer spending, which accounts for three-quarters of total economic activity - the outlook for the retail sales in the final two months of the year is more optimistic: "We also suspect that the retail sector stands a better chance of re-opening at the start of December than hospitality," Smith said.
According to Smith,
UK investors were encouraged by the data. The FTSE 100 rose 0.3%, while the pound gained modestly against both the dollar and the euro. Against the euro, the pound was last up 0.1% at 89.43 pence, having recovered from an intraday low of 89.52, while against the dollar, sterling was last flat at $1.3264, having traded earlier at a low of $1.3247.
- Insurance regulatory IRDAI gives in-principle approval for Bharti AXA-ICICI Lombard merger deal
- Arecibo Observatory is shutting down — here are some of the most groundbreaking discoveries it inspired, including one that led to a Nobel Prize
- PM to visit 3 vaccine centres in Ahmedabad, Pune & Hyderabad on Sat (Ld)
- India's GDP shrunk 7.5% in July-September — markets had feared much worse
- Oppo ColorOS 11 review — faster, lighter, better, but is it enough?