UK retail sales increased by 0.3% in December
UK retail sales increased by 0.3% in December which is a far cry from analysts expectations of a 1% increase. However, when you consider the number of positive trading statements we have seen over the last few weeks it seems rather bizarre that sales on the whole only increased by 0.3%.
This disappointing retail sales figure will do nothing for the UK stock market and investors who have suddenly turned negative on the UK and the worldwide economy. After a brief period of respite, when the majority of investors believed the UK was moving out of recession, we have seen a further hit in the UK banking arena, concerns about the Chinese economy and now we have disappointing retail sales suggesting that the UK retail market is nowhere near as buoyant as some people had believed.
Whether investors will use the retail sales data as a reason or an excuse to cash in some of their chips remains to be seen but it will do nothing for the fragile nature of the recovery in the UK stock market and the UK economy. Slowly but surely the assumed recovery in the UK economy is starting to unravel although, as we have seen over the last few months, sentiment can "turn on a sixpence".
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