UK Consumers Feeling the Pinch

February 17, 2017 Share Print 0

British shoppers unexpectedly cut back on their spending in January as last year’s Brexit vote pushed up inflation, official data showed on Friday, the strongest sign to date that the country’s economy is heading for a slowdown.

Consumers were barely fazed last year by June’s decision to leave the European Union. But they are turning more cautious with prices rising quickly in response to the post-referendum slump in the value of the pound and higher oil prices.

Official data on Friday showed retail sales volumes fell by 0.3 percent month-on-month in January, much weaker than economists’ forecasts in a Reuters poll for a 0.9 percent increase. No forecaster had expected a fall.

Reuters

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Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.