UK Retail Sales Plunge Most Since March of 2009

Additional cracks are starting to appear in the global economy. In the UK, retail sales plunged the most in eight years. Consumers are also becoming worried about falling house prices. I propose consumers should have been worried that home prices would tank long ago.

Bloomberg notes that U.K. Retail Sales Plunge at Fastest Annual Pace in Eight Years . The story caught my eye and was not unexpected.

The Confederation of British Industry said its measure of sales plunged to minus 36 in October -- the lowest since March 2009 -- from a positive 42 in September. Faster inflation has put the squeeze on shoppers this year, and a separate report on Thursday suggests a cooling housing market could further dampen consumers’ enthusiasm for spending. YouGov and the Centre for Economics and Business Research said while their headline sentiment measure rose this month, confidence in the housing market weakened. “The downtick in the house value measures is a concern,” said Nina Skero, head of macroeconomics at the CEBR. “One’s perception of own home value has direct implications on their future willingness to spend.”

How Economic Illiterates Think

Nina Skero, head of macroeconomics at the CEBR, provides a perfect example of economic illiteracy. The concern should not be that home prices are falling in the UK. The concern should be they got as high as they did in the first place.

Mike "Mish" Shedlock

Comments
No. 1-20
cecilhenry
cecilhenry

People have no money. The government steals it all in taxes. The parasitism must end. Let people keep their earnings. \

Realist
Realist

But your hero Trump is the King of Debt. He is going to load up on Debt to get more growth. Get with the program.

Medex_Man
Medex_Man

Debt growth is not economic growth. The neo-keynesians were pulling a con job from the beginning. There is no free lunch, and like all the other "free" sh!t the socialists promise, the eventual bill for "free" sh!t will be many multiples of what it would have cost to buy honestly.

Blacklisted
Blacklisted

UK RE is down for the same reason it will plummet in New Zealand - ignorant, self serving politicians have banned foreign investment in RE. Of course, you also have those same politicians raising taxes that scare potential buyer away. The majority of high end sales are cash buyers looking for a safe place to park money. Broke govts going after property owners is just another source for stocks, which are liquid and moveable.

RobinBanks
RobinBanks

UK credit impulse has fallen 4.6%, hence the sharp slowdown. By the way Realist, China's credit impulse is down 14%. The cracks are fairly obvious and growing wider.