Retail sales in the U.K. rebounded strongly in the first month of the year after a big decline the previous month on harsh winter weather, while the manufacturing sector looks to continued growth, according to The Daily Telegraph. On Friday, the Office for National Statistics reported that retail sales rose 1.9% in January after heavy snow led to the largest monthly decline in sales volumes on record. However, the strong rebound was partially offset by the downwards revision of December from a 0.8% contraction to a 1.4% decline, which suggests to Peter Dixon of Commerzbank, “The trends for sales remain fairly sluggish.”
A separate report from the CBI found that the manufacturing recovery in the U.K. is continuing to strengthen, with the latest survey of industrial trends showing an expectation for a sharp spike in activity in the coming months. The output expectations balance revealed that 23% more manufacturers expect growth than those that expect losses, up from 17% previously. Economists see the data as an indication that the sector is growing at roughly a 3% pace. However, the report also showed the third highest level of price pressure in the last two decades, with a balance of 32% of manufacturers expecting higher prices in the coming quarter.
Click here to read the story on retail sales from The Daily Telegraph.
Click here for coverage of the industrial recovery from The Daily Telegraph.