"Today's numbers aren't terribly positive as far as the fourth-quarter gross domestic product goes"
- David Tinsley, an economist at BNP Paribas SA
Retail sales in the U.K. fell more than expected in October, as shoppers cut back on clothing and food, adding to concerns that the British economy is likely to fall into a triple-dip recession. Sales, including fuel, erased 0.8%, down from a 0.5% gain in the preceding month. At the same time, analysts had expected retail sales volume to decline only 0.1%. Retail sales account for around a fifth of the nation's GDP, so the deterioration in data will weigh on the economic performance in the last quarter of 2012.
"Today's numbers aren't terribly positive as far as the fourth-quarter gross domestic product goes," said David Tinsley, an economist at BNP Paribas SA in London. "There is a reasonable chance that the fourth-quarter release will show the economy slipping backwards. That will raise the political heat for the government amidst talk of the economy triple dipping."
"Retail sales had improved through 2012 as the fall in inflation eased the squeeze on households, but as inflation goes up that puts the brakes on retail sales for now," said Rob Wood, economist at Berenberg Bank.
The FTSE 100 Index turned lower 0.77 per cent to 5,677.75. The broader FTSE All-Share Index fell 0.68 per cent to 2,968.63.
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