MNI DATA IMPACT: UK Consumers Defy Brexit Gloom>

By Laurie Laird and Irene Prihoda

     LONDON (MNI) - UK consumers continued to spend in the third 

quarter, defying the uncertainty of the looming exit from the European 

Union. 

     The following are the key points from retail sales data 

published Thursday by the Office for National Statistics.

     - Retail sales increased by 0.6% in the third quarter, suggesting 

consumers were undaunted by headlines of a potential Brexit-related 

economic downturn. Retail activity is poised to all 0.03 percentage 

points to Q3 GDP growth.  

     - The Q3 outturn matches the sales increase recorded in Q2, when 

consumer spending rose by 0.4%, adding 0.22 percentage points to GDP. 

     - Sales were unchanged between August and September, exceeding the 

Bloomberg median forecast of a modest decline.  Department store sales, 

which comprise 8.4% of total volumes continued to disappoint, declining 

by 0.3%. Non-specialised store sales have recorded just one monthly 

increase since the beginning of 2019.

     - Internet sales, measured by value, declined for the second 

consecutive month, falling by 2.0%, the most significant retreat since 

December of 2016. Surprisingly, online retailers blamed poor weather  

for the weakness of internet sales, according to a national 

statistician. 

     - On-line sales values, measured as a proportion of total retail, 

declined to 19.1%, the second straight decline, from the record-high 

19.8% recorded in July. 

     - Retail price pressures remained subdued, with the implied 

deflator rising by just 0.3% in September, the smallest increase since 

April. 

     - Household goods sales rose by 2.0% between August and September, 

but declined by 0.7% in the third quarter, exerting significant downward 

pressure on quarterly sales volumes. Anecdotal comments from retailers 

did not link the Q3 weakness to the recent softness in the housing 

market, according to national statisticians. 

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com

[TOPICS: M$B$$$,MABDS$]