Figures for October’s UK retail sales have shown they have fallen by 0.8% with shoppers cutting back on clothing and food purchases. This could be the first signs of the positive economic news for the UK following the Olympics falling away, it was always expected that the Olympics would cause a spike of positivity for the UK and this mornings news seems to show that the spike is already coming to an end. Following a big spending increase in the UK in the lead up to and during the Olympics people are apparently now cutting back before the run up to Christmas. With this Monday the supposed “Cyber Monday” when the biggest level of shopping online in a single day is expected it will be interesting to see whether the Olympic effect means the general public do not spend as much this Christmas and therefore we see Retail Sales continue to weaken off. The UK high street makes up a large part of the economy and so positive figures in this sector are necessary for the UK to recover from the current economic issues they are facing.
More negative economic news was released this morning but this time it was for Germany who’s official figures have shown that their economic growth has slowed with growth now at just 0.2% considerably down from the 0.5% Germany witnessed at the start of the year. The debt crisis in the Eurozone was credited as the cause for this slow down in growth and as the debt issues don’t look like being resolved any time soon it could be expected that growth in Germany and the rest of the EU remains slow or could even become negative. While this may seem like good news for GBP/EUR exchange rates there is a strong chance that the debt crisis will add yet more pressure on the UK and therefore Sterling exchange rates.
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