U.K. retail sales seem to have rebounded in October

U.K. retail sales are expected to have rebounded in October. In the previous month, retail sales stayed flat, owing to a huge decline in clothing and footwear sales as the extreme warm weather surprised the retailers. Furthermore, prices of footwear and clothing were quite high during the month as it was the single biggest factor responsible for the rise in CPI inflation.

This combination implies that there would be huge discount in October in order to reverse the unwanted stock-build, said Societe Generale in a research note. Therefore, the retail sales are expected to have bounced sequentially in October, which would help push up the year-on-year rate, added Societe Generale. A significant rebound in the survey balance of reported sales is expected.