Early reports for retail sales in the U.K. suggest that the harsh winter weather is likely to have had a substantial, negative impact on the sector in the closing month of 2010, according to The Wall Street Journal. Data from clothing retailer Next and entertainment retailer HMV Group painted a bleak picture of the recently past holiday season, with Next estimating that the snow in the week before Christmas cost the company £22 million of full-price sales. HMV Group announced that it would be closing about 60 stores after sales dropped 11.9% in the last five weeks of the year.
A separate report from Markit and the Chartered Institute of Purchasing and Supply found their purchasing managers index was worse than expected in December at a level of 49.1. The reading was below the 50.9 forecast slowdown from 51.8 in November, and represents a contraction as it lies below the critical 50-point mark. Commercial construction was the only sector to show an increase, and even that was the smallest gain in 10 years, and Jeremy Cook of World First said the data “Sets the U.K. up for a slip” in fourth quarter economic growth, citing the “significant” contribution of the sector to gross domestic product in recent quarters.
Click here to read the story on retail sales from The Wall Street Journal.
Click here for coverage of construction from The Daily Telegraph.