- Ben Broadbent, BoE Deputy Governor
Retail sales in Britain declined more than expected in September, as clothing sales experienced the biggest decrease since April 2012. The volume of sales dropped 0.3% from August, with clothing and footwear falling 7.8% as many consumers delayed buying winter clothing due to unseasonably warm September, the Office for National Statistics reported. Economists, however, had expected a 0.1% slide. Sales excluding fuel also dropped 0.3% following a negatively revised increase of 0.2% a month earlier. Nevertheless, year-on-year data showed total retail sales rose 2.7% compared with September last year, while core retail sales advanced 3.1%. Meanwhile, UK's manufacturing sector continued to recover in October, the Confederation of British Industries said. However, the sector is facing headwinds, including global political instability, increasing concerns about weakness in the continental Europe and recent strengthening of the Sterling, which weighs on export demand.
In the meantime, the Bank of England Deputy Governor Ben Broadbent said the central bank's interest rates hikes will be gradual and limited, as headwinds to economic growth and long-term downward pressures on borrowing costs disappear. He also said that current very low inflation will rise as productivity improves.
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