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| Thursday, December 17, 1998 Published at 10:30 GMT Business: The Economy Surprise recovery in UK retail sales ![]() Retailers say they have a torrid time, but figures suggest otherwise UK retail sales have bounced back in November, bringing a welcome Christmas present to the beleaguered sector.
During recent weeks major retailers had issued profit warnings, which seemed to support suggestions of a marked slowdown on the High Street. Successive cuts in the UK cost of borrowing appear to have prompted shoppers to part with their money in the pre-Christmas shopping rush. Rate cut hopes fade
Philip Shaw, chief economist at financial group Investec said: "The fact that retail sales volumes have posted an increase in November is a major surprise and runs contrary to both survey and anecdotal evidence that we have seen over the last couple of weeks. The implication for monetary policy is that the MPC (the Bank of England's Monetary Policy Committee) will not be keen to rush into another rate cut at its meeting in January." Retail sales volume rose 0.8% in November, compared to the previous month. Sales volumes are up 2.5% compared to a year ago. The figures are far better than City analysts had expected; they had actually predicted a further retail slump. UK interest rates were cut by 0.5% to 6.25% earlier this month. | The Economy Contents
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