British consumers failed to increase their spending in December for a record fifth month in a row, adding to signs of a weakening economy that might prompt the Bank of England to cut interest rates this month. Official data on Friday showed monthly sales volumes fell by 0.6 per cent from November, defying the median forecast for a rise of 0.5 per cent in a Reuters poll of economists. Annual growth in retail sales volumes dropped to 0.9 per cent, below all forecasts in the Reuters poll. In the fourth quarter as a whole, volumes fell by 1 per cent, their worst performance since early 2017. But more recently it has started to soften, despite low unemployment and modest inflation which have boosted household incomes.

Source: The Irish Times January 17, 2020 10:41 UTC