GBP: UK retail sales fall by more than expected

We don’t know what is happening with Brexit at present and it appears that those in charge don’t either. Take yesterday for example – Theresa May highlighted the possibility
of extending the transition period, then Penny Mordaunt gave an interview to the press where she said that May is not suggesting an extension. Then, following a Tory backlash,
May says she is not looking at extending the transition period, but is looking at having the option to extend the transition period. The mind boggles.

In terms of economic data, retail sales in September were a tad disappointing and fell by more than expected. Analysts had expected a 0.4% drop from the previous month, but
they actually slipped by 0.8%. Customers bought less food according to the Office for National Statistics. However, let’s remember that one month’s data can be extremely
volatile – far better to look at the trend over a quarter. On a three-month basis, the quantity of food bought increased by 1.2%.

Today we will have the public sector net borrowing figures for September. The deficit is expected to narrow which could put pressure on the government to put its hand in its
pocket.