Thursday, BNP Paribas said in a report U.K. retailers' fortunes were largely dependent on how much household desired savings would increase in the coming months, as economic prospects remain uncertain.
The Office for National Statistics had announced earlier in the day that retail sales volume remained flat on a monthly basis for the second straight month in September. Economists had expected a 0.5% increase. On a quarterly basis, total retail sales were up 1% sequentially in the third quarter, faster than the 0.8% growth in the previous quarter.
BNP Paribas commented that the sustainability of the upward trend in retail sales largely depends on a rise in household desired savings, which have been afflicted by reductions in prospective income and higher taxes as noted by the minutes of the last Monetary Policy Meeting held by the Bank of England on October 7 and 8. The firm pointed out that retail sales continued to remain disappointing when compared to recent survey data such as the CIPS Services index, which stood at 55.3 in September, marking the fifth straight month of expansion and also its highest level in two years.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.