UK: Mild downside risks to the August retail sales report - TDS

Analysts at TDS see mild downside risks to the August retail sales report of UK, with the level of sales expected to remain unchanged from its July reading (consensus: 0.2%).

Key Quotes

“As real income growth remains negative, consumers are starting to retrench in their spending and retailers are losing money absorbing pass-through from the weaker pound, as evidenced recently in comments by some major retailers. Despite relatively sideways economic growth, we still expect the Bank of England to hike rates twice in the coming months as the labour market suggests a balanced economy and inflation pressures remain elevated.”