- ONS: Merchandise transactions dropped by 0.3% in October following a 1.1% decrease in September
- This brought the amount of sales back to the level last observed in February 2021
- Retail chains are optimistic that Black Friday and Cyber Monday will revive the festive season’s commerce
Bond returns plummeted to a six-month low yesterday, as financiers heightened speculations about an early reduction in interest rates following a steep decline in retail transactions.Thank you for reading this post, don't forget to subscribe!
In a discouraging update ahead of the critical Christmas trading period, the Office for National Statistics revealed that the sales volume of goods dropped by 0.3% in October, after a 1.1% decline in September.
This brought sales volumes back to the levels of February 2021, when stringent Covid lockdown restrictions were in place, adversely impacting the main thoroughfares.
Following a lackluster start to the so-called ‘Golden Quarter’ for merchants, the chains are banking on a profitable Black Friday and Cyber Monday at the end of the month to reinvigorate the festive season. The statistics sparked renewed concerns about the economic welfare, intensifying the demands on Chancellor Jeremy Hunt to take actions in his forthcoming autumn statement.
It also led to assumptions regarding the timeline for the Bank of England to slash interest rates, despite the warning from the central bank’s deputy governor that supplementary hikes may be requisite to manage inflation.