UK Retail sales Continue to Rise in November

Retail sales in the UK have risen on a year-on-year basis for the third consecutive month in November, according to figures just released by the Office for National Statistics.

The volume of retail sales in the UK in November 2009 was 3.1% higher than November last year, and the value of those sales increased 2.7%.

Of course it is expected that sales will increase in the run up to Christmas, but the fact that the same logic was in action during the same period last year, still means that people's confidence in the economy is improving, and more importantly translating into an increasing willingness to spend.

Analysts have recently suggested that UK GDP actually grew June-September, but according to official figures the UK was still in recession in the third quarter -- this made it one of the last economies in Europe to leave recession. Of course all of us are hoping that we will pop our head back up from the sea of financial misery to take a breath of the 4th quarter's economic fresh air, but unfortunately nothing can be ruled out at this stage.

The current argument over house prices is stronger than ever; some say that prices will grow, with forecasts ranging from 3% to 10% and others are saying that the current bubble (bubble of positive feeling, not the traditional sense) will burst in 2010, as unemployment continues to pile on the pressure and the momentum runs out as those who can afford the stiff deposits still needed start to become fewer in number.

You would think that the positive data on retail sales would have lifted the value of Sterling a little, and it might have, if the Bank of England hadn't kept interest rates at 0.5% yesterday. Funnily enough it is one of the main bankers who is the biggest proponent of a fall in house prices next year, well Monetary Policy Member and interest-rate-setter Kate Barker to be precise.

In other ONS News Released Today:

UK Residents continue to travel abroad less, spend less and we are also receiving less foreign visitors.

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