UK retail sales rose at their slowest pace in five months in November, according to figures by National Statistics Sales rose by 0.1pc in November from October and were up 4.0pc on a year-on-year basis. Economists had expected sales to rise 0.3pc on the month following a 0.8pc surge in October In the three months to November, sales rose 1.5pc on the previous three months. This week, video game retailer The Game Group warned that consumer activity in its outlets has slowed from last year, with sales this month falling 5pc short of 2001 levels.
However, the slowdown in retail sales is unlikely to prompt the Bank of England to cut rates, particularly with inflation running above its target level of 2.5pc Niall Dunne, economist at Ulster Bank, said he had expected a fall off in activity in November following the strong performance the previous month "Clothing sales were exceptionally strong in October and due a correction [and] there was a fear of terrorist attacks on the underground in London, which may have deterred shoppers," he said. "However the dip won't be severe enough to justify a rate cut, so sterling will remain strong." //www.fxcentre.com