UK News Pound hits new 37-year low as retail sales slide

[tom_mai78101]

The pound has fallen to a new 37-year low against the US dollar after figures showed UK retail sales fell sharply in August as the rise in the cost of living continued to hit households.

The larger-than-expected drop in sales volumes of 1.6% prompted fresh concerns over the state of the economy.

Sales across all retail sectors fell in August as households cut back in the face of rising prices.

One analyst suggested the figures showed the UK is already in recession.

Sterling fell more than 1% against the dollar to $1.1351 at one point, its lowest since 1985, following the release of the retail sales figures. The pound recovered later to climb above $1.14.

The pound has been falling against the US currency for most of the year, partly due to the strength of the dollar. A weak pound means Brits travelling overseas will find their spending money will not stretch as far.

This comes at a time when UK inflation, which is the rate at which prices rise, is running at a near 40-year high, despite slipping to 9.9% from July's 10.1%.

The Bank of England has predicted the UK will fall into recession towards the end of this year and it is expected to keep increasing interest rates in a bid to curb inflation.

Pound hits new 37-year low as retail sales slide

Weaker-than-expected sales figures send sterling lower as fears grow for the strength of the economy.

www.bbc.com

 

[The Helper]

Brexit aftermath still! England should have never entered into that European Union stuff if they were not going to stay in it. It is almost impossible to ship anything to the UK and they have to make all new deals for everything it is a miracle the England economy has not collapsed. That would be impossible though as England has plenty of cash and is all tied up with the Federal Reserve - you know the Illuminati