So, is the recession over? The Office for National Statistics’ (ONS) retail sales figures show that sales volumes were flat in February, when many expected them to fall. Moreover, the increase in sales volumes for January was revised upwards from 3.4 per cent to 3.6 per cent, coming on the back of a sharp fall in December (on seasonally-adjusted figures).
Clothing stores did better than most with sales volumes up 1.7 per cent in February. Household goods volumes were down 1 per cent – something which retailers apparently blamed on the poor weather – although it doesn’t make a lot of sense why we would feel happy going out in the rain to buy a new outfit but not a sofa or a bucket. The longer-term picture, however, is still one of mild recession: sales volumes in the three months to February were down 1 per cent on the same period a year earlier.
What is remarkable is how interest rates seem to be out of kilter with the economy.
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