There is more bad economic data this morning as August retail sales fell at the fastest pace in eight months.
The amount of goods sold in-store and online fell 1.6 percent from July, according to the ONS. That decline was three times greater than predicted.
Sales fell across all categories – the first time since July 2021, when the reopening of catering establishments following Covid restrictions drove customers to restaurants and bars.
The numbers are the latest sign of how rising inflation and severe pressure on living standards are affecting consumers. It also highlights the challenge retailers face as they approach the key Christmas trading period.
5 things to start your day with
1) Why Waitrose’s claim to keep prices low is wrong? Prices for everyday staples have increased by more than 30 percent in some cases
2) British Airways cancels one in seven flights during Queen Elizabeth II’s funeral 100 flights canceled to keep air clear as Heathrow limits Monday arrivals and departures
3) We don’t know how much the freeze on Liz Truss’s utility bills will cost, Treasury admits The prime minister’s tax statement, expected next week, will reverse the tax hikes, but the cost of policies to ease the bills will only cover the first few months
4) Owner Louis Vuitton tells staff to take the stairs and rejects store thermostats Even the French luxury retailer is cutting back on sky-high energy costs
5) Billionaire founder of Patagonia is giving away the outdoor brand Company splits between two organizations and pays dividend to ‘protect the planet’
What happened overnight?
Asian markets were weaker this morning as investors braced for a US rate hike next week amid growing concerns about a global recession following warnings from the World Bank and the International Monetary Fund.
MSCI’s broadest index of Asia-Pacific stocks outside of Japan fell 0.3 percent Friday after US stocks ended the previous session with slight losses. The index has fallen 4.1 percent so far this month.
Australian stocks fell 0.9 percent on Friday, while Japan’s Nikkei stock index fell 1.2 percent.
Hong Kong’s Hang Seng index fell 1.1 percent, while China’s CSI300 index was 0.9 percent lower.
- Economy: Inflation (EU), Retail Sales (UK, US, China), Industrial Production (China), Michigan Consumer Confidence Index (US)
- For Business: No major planned updates