25/01/10 Disappointing Retail Sales - Suggests a fragile recovery

Commenting on the December retail sales figures, published by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The weaker than expected increase in retail sales points to a more challenging Christmas season than initially indicated by a number of larger retail chains. Although the figures are still consistent with a return to positive economic growth, it is clear that any recovery remains fragile and patchy.

“These figures suggest that smaller, independent retailers – those outside the major chains – are facing the biggest hurdles.

“While the Monetary Policy Committee need not increase its quantitative easing stimulus, it is too early to contemplate a reduction in the programme or an increase in interest rates. The main policy priority remains preventing a double-dip recession.”

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